UNITED  STATES  RAILROAD  ADMINISTRATION 

DffiECTOR  GENERAL  OF  RAILROADS 

BULLETIN  NO.  4  (Revised) 


PUBLIC  ACTS 

PROCLAMATIONS  BY  THE  PRESIDENT 

RELATING  TO  THE  UNITED  STATES 

RAILROAD  ADMINISTRATION 

AND 

GENERAL  ORDERS  AND  CIRCULARS 

ISSUED  BY  THE  DIRECTOR  GENERAL 

OF  RAILROADS 

TO 

DECEMBER  31.  1918 


WASHINGTON 

GOVERNUENT  FEINTING  OmCB 

1919 


UNITED  STATES  RAAROAD  ADMINISTRATION 
DIRECTOR  GENERAL  OF  RAILROADS 

BULLETIN  NO.  4  (Revised) 


PUBLIC  ACTS 

PROCLAMATIONS  BY  THE  PRESIDENT 

RELATING  TO  THE  UNITED  STATES 

RAILROAD  ADMINISTRATION 

AND 

GENERAL  ORDERS  AND  CIRCULARS 

ISSUED  BY  THE  DIRECTOR  GENERAL 

OF  RAILROADS 

TO 

DECEMBER  31,  1918 


WASHLNGTON 

GOVERNMENT  PRINTING  OFFICE 

1019 


UNITED  STATES  RAILROAD  ADMINISTRATION. 

W.  G.  McAdoo,  Director  General. 

Walker  D.  Hines,  Assistant  Director  General. 

OscAE  A.  Price,  Assistant  to  the  Director  General. 

M.  Brice  Clagett,  Private  Secretary  to  Director  General. 

Division  of  Finance  and  Purchases: 

John   Skelton  Williams,  Director. 

General  Counsel: 

John  Barton  Payne. 

Division  of  Operation: 

Carl  R.  Gray,  Director. 

Division  of  Trafflc: 

Edward  Chambers,  Director. 

Division  of  Labor: 

W.  S.  Carter,  Director. 

Dirision  of  PuMic  Service  and  Accounting: 
Charles  A.  Prouty,  Director. 

Dirision  of  Capital  ExpenMtures: 
Robert  S.  Lovett,  Director. 

Division  of  Inland  Waterioays: 

G.  A.  ToMLiNSON,  Director. 

Acttiary  to  the  Railroad  Administration: 
TiiKODOKE  H.   Prick. 


UHL 


CONTENTS. 

Public  acts :  Page. 

No.  241— Sixty-fourth  Congress  (H.  R.  15947)— An  act  making  appro- 
priations for  the  naval  service  for  the  fiscal  year  ending  June  30,  1917, 

and  for  other  purposes  (extract) 5 

No.  242— Sixty-fourth  Congress  (H.  R.  17498)— An  act  making  appropria- 
tions for  the  support  of  the  Army  for  the  fiscal  year  ending  June  30,  1917, 

and  for  other  piu-poses  (extract) 5 

No.  107— Sixty-fifth  Congress  (S.  3752)— An  act  to  provide  for  the  operation 
of  transportation  systems  while  under  Federal  control,  for  the  just  com- 
pensation of  their  owners,  and  for  other  purposes 11 

Proclamations  by  the  President  relating  to  the  United  States  Railroad  Adminis- 
tration : 
Proclamation  of  December  26,  1917,  taking  railroads  and  transportation 
systems  under  Federal  control  and  appointing  the  Director  General  of 

Railroads 6 

Statement  of  the  President  accompanying  his  procalmation  of  December 

26,  1917 .' 9 

>  Proclamation  of  March  29,  1918,  delegating  powers  under  act  of  March  21, 

^  1918,  to  Director  General  of  Railroads 20 

^  Proclamation  of  April  11,   1918,  taking  certain  coastwise  transportation 

systems  imder  Federal  control 21 

Proclamation  of  July  22,  1918,  possession  and  control  of  the  transportation 

system  of  the  Boston,  Cape  Cod  &  New  York  Canal  Co 24 

Proclamation  of  November  16,  1918,  possession  and  control  of  American 

Railway  Express  Co 27 

"V       Order  of  relinquishment 29 

^     Opinion  sustaining  W.  G.  McAdoo,  Director  General  of  Railroads,  by  Hon. 

^         Jacob  Trieber 31 

Form  A. — Agreement  between  the  Director  General  of  Raih-oads  and  blank 

company ^^ 

Form  B. — Agi-eement  between  the  Director  General  of  Railroads  and  blank 

company  and  other  corporations 59 

Short  line  contract 80 

3     Memorandum  of  agreement  between  William  G.  McAdoo,  Director  General  of 

^  Railroads,  and  the  American  Railway  Express  Company 85 

L  V      Public  announcements 99 

General  orders: 

Issued  by  Director  General  of  Railroads  to  and  including  December  31, 

1918 145 

List  of 141 

Index  to 405 

Circulars: 

Issued  by  Director  General  of  Railroads  to  and  including  December  31, 

1918 357 

List  of 355 

Index  to 432 

(3) 


PUBLIC   ACTS   AND   PROCLAMATIONS. 


[Extract.] 

[Public — No.   241 — 64tli   Congress.] 

LH.  R.  15947.] 

An  act  making  appropriations  for  the  naval  service  for  tlie  fi.scal  year  ending 
June  thirtietli,  nineteen  hundred  and  seventeen,  and  for  other  purposes. 

Be  it  enacted  hy  the  Senate  and  House  of  Representatives  of  the 
United  States  of  Ainerlca  in  Congress  assemhled.  That  the  following 
sums  be,  and  they  are  hereby,  appropriated,  to  be  j)aid  out  of  any 
money  in  the  Treasury  not  otherwise  appropriated,  for  the  naval 
service  of  the  Government  for  the  year  ending  June  thirtieth,  nine- 
teen   hundred    and    seventeen,    and    for   other   purposes:     *     *     * 

Section  six  of  an  act  entitled  "  An  act  to  regulate  connnerce, "  ap- 
proved February  fourth,  eighteen  hundred  and  eighty-seven,  as 
amended  March  second,  eighteen  hundred  and  eighty-nine,  and  June 
twenty-ninth,  nineteen  hundred  and  six,  Avhich  reads: 

"That  in  time  of  war  or  threatened  war  preference  and  precedence 

lull.  \\\)(n]  Jci!i;ir!(!  of  \\\i'  P]-i-'Hlci!t  of  tlic  United  State^t.  be  gi\"i'ii 
"over  all  other  trailic  for  ihe  traDsportatJun  of  troopb  and  material  of 
war.  and   carriers  slial]   adopt  i-very  means  within  rheir  control  to 
tafilitate  arid  ex])e(liie  the  mijitary  traffic.'" 
je  amended  to  read  as  follo^^  sj_  "'""'"~"'"''    ^""' 

"That  m  time  of  war  or  threatened  war  preference  and  precedence 
shall,  upon  demand  of  the  President  of  the  United  States,  be  given 
over  all  other  traffic  for  the  transportation  of  troops  and  material  of 
war,  and  carriers  shall  adopt  every  means  Avithin  their  control  to 
facilitate  and  expedite  the  military  traffic.  And  in  time  of  peace 
.shipments  consigned  to  agents  of  the  United  States  for  its  use  shall 
be  delivered  by  the  carriers  as  promptly  as  possible  and  without  re- 
gard to  any  embargo  that  may  have  been  declared,  and  no  such  em 
bargo  shall  apply  to  shipments  so  consigned.  -'     *     *     * 


I  Extract.] 

[Public— X.).  242— 64th  Congress.] 

[H.  R.  17498.] 

An  act  making  appropriations  for  the  support  of  the  Army  for  the  fiscal  year 

ending    June    thirtieth,    nineteen    liundred    and    seventeen,    and    for    other 

purposes. 

Be  it  enacted  hy  the,  Senate  and  House  of  Bepresentatives  of  the, 
United  States  of  America  in  Cone/ress  assemhled.  That  the  following 
sums  be,  and  they  are  hereby,  appropriated,  out  of  any  money  in  the 

(5) 


-^1 


Treasui\v  not  otherwise  appropriated,  for  the  support  of  the  Army 
for  the  year  ending  June  thirtieth,  nineteen  hundred  and  seven- 
teen.    *     *     * 

The  President,  in  time  of  war,  is  empowered,  through  the  Secretary 
of  War,  to  take  possession  and  assume  control  of  any  system  or  sys- 
tems of  transportation,  or  any  part  thereof,  and  to  utilize  the  same, 
to  the  exclusion  as  far  as  may  be  necessary  of  all  other  traffic  thereon, 
for  the  transfer  or  transportation  of  troops,  war  material  and  equip- 
ment, or  for  such  other  purposes  connected  with  the  emergency  as 
may  be  needful  or  desirable.     *     *     ^'^ 


Bt  the  President  or  the  United  States  or  America 


z^-. 


/ 


^ 


A  PROCLAMATION.    ''  y^L^//^/n 

Whereas  the  Congress  of  the  United  States,  in  the  exercise^f  the 
constitutional  authority  vested  in  them,  by  joint  resolution  of  the 
Senate  and  House  of  Representatives  bearing  date  April  6.  1917. 
resolved : 

That  the  state  of  war  between  the  United  States  and  the  Imperial  German 
Government  which  has  tlius  been  thrust  upon  the  United  States  is  liereby  for- 
mally declared;  and  that  the  President  be,  and  he  is  hereby  authorized  and 
directed  to  employ  the  entire  naval  and  military  forces  of  the  United  States 
and  the  resources  of  the  Government  to  carry  on  war  against  the  Imperial 
German  Government;  and  to  bring  the  conflict  to  a  successful  termination  all 
of  the  resources  of  the  country  are  hereby  pledged  by  the  Congress  of  the 
United  States. 

And  by  joint  resolution  bearing  date  of  December  7, 1917,  resolved  : 

That  a  state  of  war  is  hereby  declared  to  exist  between  the  United  States  of 
America  and  the  Imperial  and  Royal  Austro-Hungarian  Government ;  and  that 
the  President  be,  and  he  is  hereby  authorized  and  directed  to  employ  the  entire 
naval  and  military  forces  of  the  United  States  and  the  resources  of  the  Govern- 
ment to  carry  on  war  against  the  Imperial  and  Royal  Austro-Hungarian  Gov- 
ernment; and  to  bring  the  conflict  to  a  successful  termination  all  the  resources 
of  the  country  are  hereby  pledged  by  the  Congress  of  the  United  States. 

And  whereas  it  is  provided  by  section  1  of  the  act  approved  August 
29,  1916,  entitled  "An  act  making  appropriations  for  the  sujjport 
of  the  Army  for  the  fiscal  year  ending  June  30,  1917,  and  for  other 
purposes,"  as  follows: 

The  President  in  time  of  war  is  empowered,  through  the  Secretary  of  War, 
to  take  possession  and  assume  control  of  any  system  or  systems  of  transporta- 
tion, or  any  part  thereof,  and  to  utilize  the  same,  to  the  exclusion,  as  far  as 
may  be  necessary,  of  all  other  traffic  thereon,  for  the  transfer  or  transportation 
of  troops,  war  material,  and  equipment,  or  for  such  other  purposes  connected 
with  the  emergency  as  may  be  neetlful  or  desirable. 

I      And  whereas  it  has  now  become  necessary  in  the  national  defense 
to  take  possession  and  assume  control  of  certain  systems  of  trans- 


portation  and  to  utilize  the  same,  to  the  exclusion,  as  far  as  may 
be  necessary,  of  other  than  war  traffic  thereon,  for  the  transporta- 
tion of  troops,  war  material,  and  equipment  therefor,  and  for  other 
needful  and  desirable  purposes  connected  with  the  prosecution  of  ^ 
the  war;  N. 

Now,  therefore,  I,  Woodroav  Wilson,  President  of  the  United  \ 
States,  under  and  by  virtue  of  the  powers  vested  in  me  by  the  fore-    \ 
going  resolutions  and  statute,  and  by  virtue  of  all  other  powers    j 
thereto  me  enabling,  do  hereby,  through  Newton  D.  Baker,  Secre- 
tary of  War,  take  possession  and  assume  control  at  12  o'clock  noon 
on  the  28th  day  of  December,  1^17,  of  each  and  every  system  of 
transportation  and  the  appurtenances  thereof  located  wholly  or  in 
part  within  the  boundaries  of  the  continental  United  States  and 
consisting  of  railroads  and  owned  or  controlled  systems  of  coastwise 
and  inland  transportation  engaged  in  general  transportation,  whether 
operated  by  steam  or  by  electric  power,  including  also  terminals, 
terminal  companies,  and  terminal  associations,  sleeping  and  parlor 
cars,  private  cars  and  private  car  lines,  elevators,  warehouses,  tele- 
graph and  telephone  lines,  and  all  other  equipment  and  appurte- 
nances commonly  used  upon  or  operated  as  a  part  of  such  rail  or  com- 
bined rail-and-water  systems  of  transportation ;  to  the  end  that  such 
systems  of  transportation  be  utilized  for  the  transfer  and  trans- 
portation, of  troops,  war  material,  and  equipment,  to  the  exclusion   | 
so  far  as  may  be  necessary  of  all  other  traffic  thereon ;  and  that  so  far  j 
as  such  exclusive  use  be  not  necessary  or  desirable  such  systems  of  j 
transportation  be  operated  and  utilized  in  the  performance  of  such 
other  services  as  the  national  interest  may  require  and  of  the  usual/ 
and  ordinary  business  and  duties  of  common  carriers. 

It  is  hereby  directed  that  the  'possession,  control,  operation,  and 
utilization  of  such  transportation  systems,  hereby  by  me  undertaken, 
shall  be  exercised  by  and  through  William  G.  McAdoo,  who  is  hereby  ^^ 
appointed  and  designated  Director  General  of  Eailroads.  Said  di- 
rector may  perform  the  duties  imposed  upon  him,  so  long  and  to 
such  extent  as  he  shall  determine,  through  the  boards  of  directors, 
receivers,  officers,  and  employees  of  said  systems  of  transportation. 
Until  and  except  so  far  as  said  director  shall  from  time  to  time  by 
general  or  special  orders  otherwise  provide,  the  boards  of  directors, 
receivers,  officers,  and  employees  of  the  various  transportation  sys- 
tems shall  continue  the  operation  thereof  in  the  usual  and  ordinary 
course  of  the  business  of  common  carriers,  in  the  names  of  their  re- 
spective companies. 

Until  and  except  so  far  as  said  director  shall  from  time  to  time 
otherwise  by  general  or  special  orders  determine,  such  systems  of 
transportation  shall  remain  subject  to  all  existing  statutes  and  orders 


8 

of  the  Interstate  Commerce  Commission  and  to  all  statutes  and 
orders  of  regulating  commissions  of  the  various  States  in  which  said 
systems  or  any  part  thereof  may  be  situated.  But  any  orders,  gen- 
eral or  special,  hereafter  made  by  said  director  shall  have  paramount 
authority  and  be  obeyed  as  such. 

Nothing  herein  shall  be  construed  as  now  affecting  the  possession, 
'operation,  and  control  of  street  electric  passenger  railways,  includ- 
ing railways  commonly  called  interurbans,  whether  such  railways 
^be  or  be  not  owned  or  controlled  by  such  railroad  companies  or  sys- 
tems. By  subsequent  order  and  proclamation,  if  and  when  it  shall 
be  found  necessary  or  desirable,  possession,  control,  or  operation  may 
be  taken  of  all  or  any  part  of  such  street  railway  systems,  including 
subways  and  tunnels;  and  by  subsequent  order  and  ]3roclamation 
possession,  control,  and  operation  in  whole  or  in  part  may  also  be 
relinquished  to  the  owners  thereof  of  any  part  of  the  railroad  sys- 
tems or  rail  and  water  systems,  possession  and  control  of  which  are 
hereby  assumed. 

The  director  shall,  as  soon  as  may  be  after  having  assumed  such 
possession  and  control,  enter  upon  negotiations  with  the  several 
companies  looking  to  agi'eements  for  just  and  reasonable  compensa- 
tion for  the  possession,  use,  and  control  of  their  respective  properties 
on  the  basis  of  an  annual  guaranteed  compensation  above  accruing 
depreciation  and  the  maintenance  of  their  properties  equivalent,  as 
nearly  as  may  be,  to  the  average  of  the  net  operating-  income  thereof 
for  the  three-year  period  ending  June  30,  1917,  the  results  of  such 
negotiations  to  be  reported  to  me  for  such  action  as  may  be  appro- 
priate and  lawful. 

But  nothing  herein  contained,  expressed  or  implied,  or  hereafter 
done  or  suffered  hereunder,  shall  be  deemed  in  any  way  to  impair 
the  rights  of  the  stockholders,  bondholders,  creditors,  and  other  per- 
sons having  interests  in  said  systems  of  transportation  or  in  the 
profits  thereof  to  receive  just  and  adecjuate  compensation  for  the  use 
and  control  and  operation  of  their  property  hereby  assumed. 

Regidar  dividends  hitherto  declared  and  maturing  interest  upon 
bonds,  debentures,  and  other  obligations  nuiy  be  paid  in  due  course; 
and  such  regular  dividends  and  interest  may  continue  to  be  paid 
until  and  unless  the  said  director  shall  from  time  to  time  otherwise 
by  general  or  special  orders  determine ;  and,  subject  to  the  approval 
of  the  director,  the  various  carriers  may  agree  upon  and  arrange  for 
the  renewal  and  extension  of  maturing  obligations. 

Except  with  the  prior  vv'ritten  assent  of  said  director,  no  attach- 
ment by  mesne  process  or  on  execution  shall  be  levied  on  or  against 
any  of  the  property  used  by  any  of  said  transportation  systems  in 
the  conduct  of  their  business  as  common  carriers;  but  suits  may  be 
brought  by  and  against  said  carriers  and  judgments  rendered  as 


hitherto  until  and  except  so  far  as  said  director  may,  hj  general  or 
special  orders,  otherwise  determine.  ^ 

From  and  after  12  o'clock  on  said  28th  day  of  December,  1917,  all   I 
transportation  systems  inchuled  in  this  order  and  proclamation  shall  I  ^^^ 
conclusively  be  deemed  Avithin  the  possession  and  control  of  said  I  [^^ 
diree-tor  without   further   act  or  notice.     But   for   the  purpose   of  \ 
accounting  said  possession  and  control  shall  date  from  12  o'clock    I 
midnight  on  December  31,  1917.  .,.y^ 

In  witness  whereof  I  have  hereunto  set  my  hand  and  caused  the 
seal  of  the  United  States  to  be  affixed. 

Done  by  the  President,  through  Xewton  D.  Baker,  Secretary  of 
War,  in  the  District  of  Columbia,  this  26th  day  of  December,  in  the 
year  of  our  Lord  one  thousand  nine  hundred  and  seventeen,  and  of 
the  independence  of  the  United  States  the  one  hundred  and  forty- 
second. 

WOODROW  WiLSOX. 

By  the  President: 
Egbert  Lansing, 

Seei'efarj/  of  Sfnfe. 
Newton  D.  Baker, 
SeoT'etary  of  ^Yar. 

Statement  of  the  President. 

I  have  exercised  the  powers  over  the  transportation  systems  of  the 
country  which  were  granted  me  by  the  act  of  Congress  of  last 
August  because  it  has  become  imperativeh^  necessary  for  m©  to  do 
so.  This  is  a  war  of  resources  no  less  than  of  men,  perhaps  even 
more  than  of  men,  and  it  is  necessary  for  the  complete  mobilization 
of  our  resources  that  the  transportation  systems  of  the  country 
should  be  organized  and  employed  under  a  single  authority  and  a 
simplified  method  of  coordination  which  have  not  proved  possible 
under  private  management  and  control.  The  committee  of  railway 
executives  who  have  been  cooperating  with  the  Govermnent  in  this 
all-important  matter  have  done  the  utmost  that  it  was  possible  for 
them  to  do ;  have  done  it  with  patriotic  zeal  and  with  great  ability ; 
but  there  were  difficulties  that  they  could  neither  escape  nor  neu- 
tralize. Complete  unity  of  administration  in  the  present  circum- 
stances involves  upon  occasion  and  at  many  points  a  serious  dislo- 
cation of  earnings,  and  the  committee  was,  of  course,  without 
power  or  authority  to  rearrange  charges  or  effect  proper  compensa- 
tions and  adjustments  of  earnings.  Several  roads  which  were  will- 
inglj^  and  with  admirable  public  spirit  accepting  the  orders  of  the 
committee  have  already  suffered  from  these  circumstances  and  should 
not  be  required  to  suffer  further.  In  mere  fairness  to  them  the  full 
authority  of  the  Government  must  be  substituted.     The  Government 


10 

itself  will  thereby  gain  an  immense  increase  of  efficiencj''  in  the  con- 
duct of  the  war  and  of  the  innumerable  activities  upon  which  its 
successful  conduct  depends. 

The  public  interest  must  be  first  served  and,  in  addition,  the  finan- 
cial interests  of  the  Government  and  the  financial  interests  of  the  rail- 
ways must  be  brought  under  a  common  direction.  The  financial 
operations  of  the  railwaj^s  need  not  then  interfere  with  the  borrow- 
ings of  the  Government,  and  they  themselves  can  be  conducted  at  a 
greater  advantage.  Investors  in  railway  securities  may  rest  assured 
that  their  rights  and  interests  will  be  as  scrupulously  looked  after 
by  the  Government  as  they  could  be  by  the  directors  of  the  several 
railway  systems.  Immediately  upon  the  reassembling  of  CongTess  I 
shall  recommend  that  these  definite  guarantees  be  given:  First,  of 
course,  that  the  railway  properties  will  be  maintained  during  the 
period  of  Federal  control  in  as  good  repair  and  as  complete  equip- 
ment as  when  taken  over  by  the  Government;  and,  second,  that  the 
roads  shall  receive  a  net  operating  income  equal  in  each  case  to  the 
average  net  income  of  the  three  years  preceding  June  30,  1917;  and  I 
am  entirely  confident  that  the  CongTess  will  be  disposed  in  this  case, 
as  in  others,  to  see  that  justice  is  done  and  full  security  assured  to  the 
owners  and  creditors  of  the  great  systems  which  the  Government 
must  now  use  under  its  own  direction  or  else  suffer  serious  embarrass- 
ment. 

The  Secretary  of  War  and  I  are  agreed  that,  all  the  circumstances 
being  taken  into  consideration,  the  best  results  can  be  obtained  under 
the  immediate  executive  direction  of  the  Hon.  William  G.  McAdoo, 
whose  practical  exj^erience  peculiarly  fits  him  for  the  service  and 
whose  authority  as  Secretary  of  the  Treasury  will  enable  him  to 
coordinate  as  no  other  man  could  the  many  financial  interests  which 
will  be  involved  and  which  might,  unless  systematically  directed, 
suffer  very  embarrassing  entanglements. 

The  Government  of  the  United  States  is  the  only  great  Government 
now  engaged  in  the  war  which  has  not  already  assumed  control  of 
this  sort.  It  was  thought  to  be  in  the  spirit  of  American  institutions 
to  attempt  to  do  everything  that  was  necessary  through  private  man- 
agement, and  if  zeal  and  ability  and  patriotic  motive  could  have 
accomplished  the  necessary  unification  of  administration  it  would 
certainly  have  been  accomplished ;  but  no  zeal  or  ability  could  over- 
come insuperable  obstacles,  and  I  have  deemed  it  my  duty  to  recog- 
nize that  fact  in  all  candor,  now  that  it  is  demonstrated,  and  to  use 
without  reserve  the  great  authority  reposed  in  me.  A  great  national 
necessity  dictated  the  action,  and  I  was  therefore  not  at  liberty  to 
abstain  from  it. 

WOODROW  AViLSON. 


[Public— No.  107 — 65th  Congress. 


An  Act  To  provide  for  the  operation  of  tran.sportation  systems  vhile  under 
Federal  control,  for  tlie  .lust  compensation  of  their  owners,  and  for  other 
purposes. 

Be  it  enacted,  hy  the  Seriate  and  Home  of  Representatives  of  the 
United  States  of  America  in  Congress  assembled^  That  the  President, 
having  in  time  of  war  taken  over  the  possession,  use,  control,  and 
operation  (called  herein  Federal  control)  of  certain  railroads  and 
sj^stems  of  transportation  (called  herein  carriers),  is  hereby  author- 
ized to  agree  with  and  to  guarantee  to  any  such  carrrier  making  oper- 
ating returns  to  the  Interstate  Commerce  Commission,  that  during 
the  period  of  such  Federal  control  it  shall  receive  as  just  compensa- 
tion an  annual  sum,  payable  from  time  to  time  in  reasonable  install- 
ments, for  each  year  and  pro  rata  for  my  fractional  year  of  such 
Federal  control,  not  exceeding  a  sum  equivalent  as  nearly  as  may  be 
to  its  average  annual  railway  operating  income  for  the  three  years 
ended  June  thirtieth,  nineteen  hundred  and  seventeen. 

That  any  railway  operating  income  accruing  during  the  period  of 
Federal  control  in  excess  of  such  just  compensation  shall  remain  the 
property  of  the  United  States,  In  the  computation  of  such  income, 
debits  and  credits  arising  from  the  accounts  called  in  the  monthly 
reports  to  the  Interstate  Commerce  Commission  equipment  rents  and 
joint  facility  rents  shall  be  included,  but  debits  and  credits  arising 
from  the  operation  of  such  street  electric  passenger  railways,  includ- 
ing railways  commonly  called  interurbans,  as  are  at  the  time  of  the 
agreement  not  under  Federal  control,  shall  be  excluded.  If  any  lines 
were  acquired  by,  leased  to,  or  consolidated  with  such  railroad  or 
system  between  July  first,  nineteen  hundred  and  fourteen,  and  De- 
cember thirty-first,  nineteen  hundred  and  seventeen,  both  inclusive, 
and  separate  operating  returns  to  the  Interstate  Commerce  Commis- 
sion were  not  made  for  such  lines  after  such  acquisition,  lease,  or  con- 
solidation, there  shall  (before  the  average  is  computed)  be  added  to 
the  total  railway  operating  income  of  such  railroad  or  system  for  the 
three  years  ended  June  thirtieth,  nineteen  hundred  and  seventeen, 
the  total  railway  operating  income  of  the  lines  so  acquired,  leased, 
or  consolidated,  for  the  period  beginning  July  first,  nineteen  hundred 
and  fourteen,  and  ending  on  the  date  of  such  acquisition,  lease,  or 
consolidation,  or  on  December  thirty-first,  nineteen  hundred  and 
seventeen,  whichever  is  the  earlier.  The  average  annual  railway 
operating  income  shall  be  ascertained  by  the  Interstate  Commerce 
Commission  and  certified  by  it  to  the  President.  Its  certificate  shall, 
for  the  purpose  of  such  agreement,  be  taken  as  conclusive  of  the 
amount  of  such  average  annual  railway  operating  income. 


12 

Every  such  agreement  shall  provide  that  any  Federal  taxes  under 
the  Act  of  October  third,  nineteen  hundred  and  seventeen,  or  Acts 
in  addition  thereto  or  in  amendment  thereof,  commonly  called  war 
taxes,  assessed  for  the  period  of  Federal  control  beginning  January 
first,  nineteen  hundred  and  eighteen,  or  any  part  of  such  period,  shall 
be  paid  by  the  carrier  out  of  its  own  funds,  or  shall  be  charged  against 
or  deducted  from  the  just  compensation;  that  other  taxes  assessed 
\mder  Federal  or  any  other  governmental  authority  for  the  period 
of  Federal  control  or  any  part  thereof,  either  on  the  property  used 
under  such  Federal  control  or  on  the  right  to  operate  as  a  carrier,  or 
on  the  revenues  or  any  part  thereof  derived  from  operation  (not 
including,  however,  assessments  for  public  improvements  or  taxes 
assessed  on  property  under  construction,  and  chargeable  under 
the  classification  of  the  Intei'state  Commerce  Commission  to  invest- 
ment in  road  and  equipment),  shall  be  paid  out  of  revenues  derived 
from  railway  operations  while  under  Federal  control;  that  all  taxes 
assessed  under  Federal  or  any  other  governmental  authority  for 
the  period  prior  to  January  first,  nineteen  hundred  and  eighteen, 
whenever  levied  or  payable,  shall  be  paid  by  the  carrier  out  of  its 
own  funds,  or  shall  be  charged  against  or  deducted  from  the  just 
compensation. 

Every  such  agreement  shall  also  contain  adequate  and  appropriate 
provisions  for  the  maintenance,  repair,  renewals,  and  depreciation 
of  the  property,  for  the  creation  of  any  reserAes  or  reserve  funds 
found  necessary  in  connection  therewith,  and  for  such  accounting 
and  adjustments  of  charges  and  payments,  both  during  and  at  the 
end  of  Federal  control  as  may  be  requisite  in  order  that  the  property 
of  each  carrier  may  be  returned  to  it  in  substantially  as  good  repair 
and  in  substantially  as  complete  equipment  as  it  was  in  at  the  begin- 
ning of  Federal  control,  and  also  that  the  United  States  may,  by 
deductions  from  the  just  compensations  or  by  other  proper  means 
and  charges  be  reimbursed  for  tlie  cost  of  any  additions,  repairs, 
renewals,  and  betterments  to  such  property  not  justly  chargeable  to 
the  United  States;  in  making  such  accounting  and  adjustments,  duo 
consideration  shall  be  given  to  the  amounts  expended  or  reserved  by 
each  carrier  for  maintenance,  repairs,  reneAvals,  and  depreciation 
during  the  three  years  ended  June  thirtieth,  nineteen  hundred  and 
seventeen,  to  the  condition  of  the  property  at  the  beginning  and  at 
the  end  of  Federal  control  and  to  any  other  pertinent  facts  and 
circumstances. 

The  President  is  further  authorized  in  such  agi'eemcnt  to  make  all 
other  reasonable  provisions,  not  inconsistent  w'ith  the  provisions  of 
this  Act  or  of  the  Act  entitled  "  An  Act  making  appropriations  for 
the  support  of  the  Army  for  the  fiscal  year  ending  June  thirtieth, 
nineteen  hundred  and  seventeen,  and  for  other  purposes,"  approved 


13 

August  twenty-ninth,  nineteen  hundred  and  sixteen,  that  he  may 
deem  necessary  or  proper  for  such  Federal  control  or  for  the  deter- 
mination of  the  mutual  rights  and  obligations  of  the  parties  to  the 
agreement  arising  from  or  out  of  such  Federal  control. 

If  the  President  shall  find  that  the  condition  of  anj^  carrier  was 
during  all  or  a  substantial  portion  of  the  period  of  three  years  ended 
June  thirtieth,  nineteen  hundred  and  seventeen,  because  of  non- 
operation,  receivei'ship,  or  Avhere  recent  expenditures  for  additions 
or  improvements  or  equipment  were  not  fully  reflected  in  the  operat- 
ing railway  income  of  said  throe  years  or  a  substantial  portion  thereof, 
or  because  of  any  undeveloped  or  abnormal  conditions,  so  excep- 
tional as  to  make  the  basis  of  earnings  hereinabove  provided  for 
plainly  inequitable  as  a  fair  measure  of  just  compensation,  then  the 
President  may  make  with  tlie  carrier  such  agreement  for  such  amount 
as  just  compensation  as  under  the  circumstances  of  the  particular 
case  he  shall  find  just. 

That  every  railroad  not  owned,  controlled,  or  operated  by  another 
carrier  company,  and  which  has  heretofore  competed  for  traffic  with 
a  railroad  or  railroads  of  which  the  President  has  taken  the  posses- 
sion, use,  and  control,  or  which  connects  with  such  railroads  and  is 
engaged  as  a  common  carrier  in  general  transportation,  shall  be  held 
and  considered  as  within  "  Federal  control,"  as  herein  defined,  and 
necessary  for  the  prosecution  of  the  war,  and  shall  be  entitled  to 
the  benefit  of  all  the  provisions  of  this  Act :  Provided^  however^  That 
nothing  in  this  paragi'aph  shall  be  construed  as  including  any  street 
or  interurban  electric  railway  which  has  as  its  principal  source  of 
operating  revenue  urban,  suburban,  or  interurban  passenger  traffic, 
or  sale  of  power,  heat  and  light,  or  both. 

The  agreement  shall  also  provide  that  the  carrier  shall  accept  all 
the  terms  and  conditions  of  this  act  and  any  regulation  or  order  made 
by  or  through  the  President  under  authority  of  this  act  or  of  that  por- 
tion of  the  act  entitled  "  An  act  making  appropriations  for  the  sup- 
port of  the  Army  for  the  fiscal  year  ending  June  thirtieth,  nineteen 
liundred  and  scA-enteen,  and  for  other  purposes."  approved  August 
twenty-ninth,  nineteen  hundred  and  sixteen,  which  authorizes  the 
President  in  time  of  war  to  take  possession,  assume  control,  and  util- 
ize systems  of  transportation. 

Sec.  2.  That  if  no  such  agreement  is  made,  or  pending  the  execution 
of  an  agreement,  the  President  ma}'  nevertheless  pay  to  any  carrier 
while  under  Federal  control  an  annual  amount.  pa3^able  in  reasonable 
installments,  not  exceeding  ninety  per  centum  of  the  estimated 
annual  amount  of  just  compensation,  remitting  such  carrier,  in  case 
where  no  agreement  is  made,  to  its  legal  rights  for  any  balance 
claiuied  to  the  remedies  provided  in  section  three  hereof.  Any 
amount  thereafter  found  due  such  carrier  above  the  amount  paid 


14 

shall  bear  interest  at  the  rate  of  six  per  centum  per  annum.  The 
acceptance  of  any  benefits  under  this  section  shall  constitute  an 
acceptance  by  the  carrier  of  all  the  provisions  of  this  Act  and  shall 
obligate  the  carrier  to  pay  to  the  United  States,  with  interest  at  the 
rate  of  six  per  centum  per  annum  from  a  date  or  dates  fixed  in  pro- 
ceedings under  section  three,  the  amount  by  which  the  sums  received 
under  this  section  exceed  the  sum  found  due  in  such  proceedings. 

Sec.  3.  That  all  claims  for  just  compensation  not  adjusted  (as 
provided  in  section  one)  shall,  on  the  application  of  the  President  or 
of  any  carrier,  be  submitted  to  boards,  each  consisting  of  three  ref- 
erees to  be  appointed  by  the  Interstate  Commerce  Conmiission,  mem- 
bers of  which  and  the  official  force  thereof  being  eligible  for  service 
on  such  boards  without  additional  compensation.  Such  boards  of 
referees  are  hereby  authorized  to  summon  witnesses,  require  the  pro- 
duction of  records,  books,  correspondence,  documents,  memoranda, 
and  other  papers,  view  properties,  administer  oaths,  and  may  hold 
hearings  in  Washington  and  elsewhere,  as  their  duties  and  the  con- 
venience of  the  parties  may  require.  In  case  of  disobedience  to  a 
subpoena  the  board  may  invoke  the  aid  of  any  district  court  of  the 
United  States  in  requiring  the  attendance  and  testimony  of  witnesses 
and  the  production  of  documentary  evidence,  and  such  court  within 
the  jurisdiction  of  which  such  inquiry  is  carried  on  may,  in  case  of 
contumacy  or  refusal  to  obey  a  subpoena  issued  to  any  person,  corpo- 
ration, partnership,  or  association,  issue  an  order  requiring  appeai- 
ance  before  the  board,  or  the  production  of  documentai-y  evidence  if 
so  ordered,  or  the  giving  of  evidence  touching  the  matter  in  question ; 
and  any  failure  to  obey  such  order  of  the  court  may  be  punished  by 
such  court  as  a  contempt  thereof.  Such  cases  may  be  heard  separately 
or  together  or  by  classes,  by  such  boards  as  the  Interstate  Commerce 
Commission  in  the  first  instance,  or  any  board  of  referees  to  which 
any  such  cases  shall  be  referred  may  determine.  Said  boards  shall 
give  full  hearings  to  such  carriers  and  to  the  United  States;  shall 
consider  all  the  facts  and  circumstances,  and  shall  report  as  soon  as 
practicable  in  each  case  to  the  President  the  just  compensation,  cal- 
culated on  an  annual  basis  and  otherwise  in  such  form  as  to  be  con- 
venient and  available  for  the  making  of  such  agreement  as  is  author- 
ized in  section  one.  Tlic  President  is  authorized  to  enter  into  an 
agreement  with  such  carrier  for  just  compensation  ui)on  a  basis  not 
in  excess  of  that  reported  by  such  board,  and  may  include  therein 
provisions  similar  to  those  authorized  under  section  one.  Failing 
such  agreement,  either  the  United  States  or  such  carrier  may  file  a 
petition  in  the  Court  of  Claims  for  the  purpose  of  determining  the 
amoimt  of  such  just  compensation,  and  in  the  proceedings  in  said 
court  the  report  of  said  referees  shall  be  prima  facie  evidence  of  the 
amount  of  just  compensation  and  of  the  facts  therein  stated.    Pro- 


15 

ceedings  in  the  Court  of  Claims  under  this  section  shall  be  given 
precedence  and  expedited  in  every  practicable  way. 

Sec.  4.  That  the  just  compensation  that  may  be  determined  as 
hereinbefore  provided  b}'  agreement  or  that  may  be  adjudicated  by 
the  Court  of  Claims,  shall  be  increased  by  an  amount  reckoned  at  a 
reasonable  rate  per  centum  to  be  fixed  by  the  President  upon  the 
cost  of  any  additions  and  betterments,  less  retirements,  and  upon 
the  cost  of  road  extensions  to  the  property  of  such  carrier  made  by 
such  carrier  with  the  approval  of  or  by  order  of  the  President  Avhile 
such  property  is  under  Federal  control. 

Sec.  5.  That  no  carrier  wliile  under  Federal  control  shall,  without 
the  prior  approval  of  the  President,  declare  or  pay  any  dividend  in 
excess  of  its  regular  rate  of  dividends  during  the  three  years  ended 
June  thirtieth,  nineteen  hundred  and  seventeen:  Provided-^  hoioever^ 
That  such  carriers  as  have  paid  no  regular  dividends  or  no  dividends 
during  said  period  may,  with  the  prior  approval  of  the  President, 
pay  dividends  at  such  rate  as  the  President  may  determine. 

Sec.  6.  That  the  sum  of  $500,000,000  is  hereby  appropriated,  out 
of  any  moneys  in  the  Treasury  not  otherwise  appropriated,  which, 
together  with  any  funds  available  from  any  operating  income  of 
said  carriers,  may  be  used  by  the  President  as  a  revolving  fund  for 
the  purpose  of  paying  the  expenses  of  the  Federal  control,  and  so 
far  as  necessary  the  amount  of  just  compensation,  and  to  provide 
terminals,  motive  power,  cars,  and  other  necessary  equipment,  such 
terminals,  motive  power,  cars,  and  equipment  to  be  used  and  ac- 
counted for  as  the  President  may  direct  and  to  be  disposed  of  as 
Congress  may  hereafter  by  law  provide. 

The  President  may  also  make  or  order  any  carrier  to  make  any 
additions,  betterments,  or  road  extensions,  and  to  provide  terminals, 
motive  power,  cars,  and  other  equipment  necessary  or  desirable  for 
war  purposes  or  in  the  public  interest  on  or  in  connection  with  the 
property  of  any  carrier.  He  may  from  said  revolving  fund  advance 
to  such  carrier  all  or  an}^  part  of  the  expense  of  such  additions,  bet- 
terments, or  road  extensions,  and  to  provide  terminals,  motive 
power,  cars,  and  other  necessary  equipment  so  ordered  and  con- 
structed by  such  carrier  or  by  the  President,  such  advances  to  be 
charged  against  such  carrier  and  to  bear  interest  at  such  rate  and  be 
payable  on  such  terms  as  may  be  determined  by  the  President,  to 
the  end  that  the  United  States  may  be  fully  reimbursed  for  any 
sums  so  advanced. 

Any  loss  claimed  by  any  carrier  by  reason  of  any  such  additions, 
betterments,  or  road  extensions  so  ordered  and  constructed  may  be 
determined  by  agreement  between  the  President  and  such  carrier; 
failing  such  agreement  the  amount  of  such  loss  shall  be  ascertained 
as  provided  in  section  three  hereof. 


16 

From  said  revolving  fund  the  President  ma^-  expend  sucli  an 
amount  as  he  may  deem  necessarj^  or  desirable  for  the  utilization 
and  operation  of  canals,  or  for  the  purchase,  construction,  or  utiliza- 
tion and  operation  of  boats,  barges,  tugs,  and  other  transportation 
facilities  on  the  inland,  canal,  and  coastwise  waterways,  and  may  in 
the  operation  and  use  of  such  facilities  create  or  employ  such  agen- 
cies and  enter  into  such  contracts  and  agreements  as  he  shall  deem 
in  the  public  interest. 

Sec.  7.  That  for  the  purpose  of  providing  funds  requisite  for 
maturing  obligations  or  for  other  legal  and  proper  expenditures,  or 
for  reorganizing  railroads  in  receivership,  carriers  may,  during  the 
period  of  Federal  control,  issue  such  bonds,  notes,  equipment  trust 
certificates,  stock,  and  other  forms  of  securities,  secured  or  unse- 
cured by  mortgage,  as  the  President  may  first  approve  as  consistent 
with  the  public  interest.  The  President  may,  out  of  the  revolving 
fund  created  by  this  act,  purchase  for  the  United  States  all  or  any 
part  of  such  securities  at  prices  not  exceeding  par,  and  may  sell  such 
securities  whenever  in  his  judgment  it  is  desirable  at  prices  not  less 
than  the  cost  thereof.  Any  securities  so  purchased  shall  be  held 
b}^  the  Secretary  of  the  Treasury,  who  shall,  under  the  direction  of 
the  President,  represent  the  United  States  in  all  matters  in  connec- 
tion therewith  in  the  same  manner  as  a  private  holder  thereof.  The 
President  shall  each  year  as  soon  as  practicable  after  January  first, 
cause  a  detailed  report  to  be  submitted  to  the  Congress  of  all  receipts 
and  expenditures  made  under  this  section  and  section  six  during 
the  preceding  calendar  year. 

Sec.  8.  That  the  President  may  execute  any  of  the  powers  herein 
and  heretofore  granted  him  with  relation  to  Federal  control  through 
such  agencies  as  he  may  determine,  and  may  fix  the  reasonable 
compensation  for  the  performance  of  services  in  connection  there- 
with, and  may  avail  himself  of  the  advice,  assistance,  and  coopera- 
tion of  the  Interstate  Connnerce  Commission  and  of  the  members 
and  employees  thereof,  and  may  also  call  upon  any  department,  com- 
mission, or  board  of  the  Government  for  such  services  as  he  may 
deem  expedient.  But  no  such  official  or  employee  of  the  United 
States  shall  receive  any  additional  compensation  for  such  services 
except  as  now  permitted  by  law. 

Sec.  9.  That  the  provisions  of  the  act  entitled  "An  act  making 
appropriations  for  the  support  of  the  Army  for  the  fiscal  year  end- 
ing June  thirtieth,  nineteen  hundred  and  seventeen,  and  for  other 
purposes,"  approved  August  twenty-ninth,  nineteen  hundred  and  six- 
teen, shall  remain  in  force  and  effect  except  as  expressly  modified 
and  restricted  by  this  act;  and  the  President,  in  addition  to  the 
}H)\vers  conferred  by  this  act,  shall  have  and  is  hereby  given  such 
other  and  further  powers  necessary  or  appropriate  to  give  effect  to 


17 

the  powers  herein  and  heretofore  conferred.  The  provisions  of  this 
act  shall  also  apply  to  any  carriers  to  which  Federal  control  may  bo 
hereafter  extended. 

Sec.  10.  That  carriers  while  under  Federal  control  shall  be  sub- 
ject to  all  laws  and  liabilities  as  common  carriers,  whether  arising 
under  State  or  Federal  laws  or  at  common  law,  except  in  so  far  as 
may  be  inconsistent  with  the  provisions  of  this  act  or  any  other 
act  applicable  to  such  Federal  control  or  with  any  order  of  the 
President.  Actions  at  law  or  suits  in  equity  may  be  brought  by 
and  against  such  carriers  and  judgments  rendered  as  noAv  provided 
by  law;  and  in  any  action  at  law  or  suit  in  equity'  against  the  carrier, 
no  defense  shall  be  made  thereto  upon  the  ground  that  the  carrier 
is  an  instnimentality  or  agency  of  the  Federal  Government.  Xor 
shall  any  such  carrier  be  entitled  to  have  transferred  to  a  Federal 
court  any  action  heretofore  or  hereafter  instituted  by  or  against  it, 
which  action  was  not  so  transferable  prior  to  the  Federal  control  of 
such  carrier;  and  any  action  which  has  heretofore  been  so  transferred 
because  of  such  Federal  control  or  of  any  act  of  Congress  or  official 
order  or  proclamation  relating  thereto  shall  upon  motion  of  either 
part}?^  be  transferred  to  the  court  in  which  it  was  originally  insti- 
tuted. But  no  process,  mesne  or  final,  shall  be  levied  against  any 
property  under  such  Federal  control. 

That  during  the  period  of  Federal  control,  whenever  in  his  opinion 
the  public  interest  requires,  the  President  may  initiate  rates,  fares, 
charges,  classifications,  regulations,  and  practices  by  filing  the  same 
with  the  Interstate  Commerce  Commission,  which  said  rates,  fares, 
charges,  classifications,  regidations,  and  practices  shall  not  be  sus- 
pended by  the  commission  pending  final  determination. 

Said  rates,  fares,  charges,  classifications,  regulations,  and  prac- 
tices shall  be  reasonable  and  just  and  shall  take  effect  at  such  time 
and  upon  such  notice  as  he  may  direct,  but  the  Interstate  Commerce 
Commission,  shall,  upon  complaint,  enter  upon  a  hearing  concern- 
ing the  justness  and  reasonableness  of  so  much  of  any  order  of  the 
President  as  establishes  or  changes  any  rate,  fare,  charge,  classifica- 
tion, regulation,  or  practice  of  any  carrier  under  Federal  control, 
and  may  consider  all  the  facts  and  circumstances  existing  at  the 
time  of  the  making  of  the  same.  In  determining  any  question  con- 
cerning an}'  such  rates,  fares,  charges,  classifications,  regulations,  or 
practices  or  changes  therein,  the  Interstate  Commerce  Commission  I 
shall  give  due  consideration  to  the  fact  that  the  transportation 
systems  are  being  operated  under  a  unified  and  coordinated  national 
control  and  not  in  competition. 

After  full  hearing  the  commission  may  make  such  findings  and 
orders  as  are  authorized  by  the  act  to  regulate  commerce  as  amended, 
105889°— 19 2 


18 

and  said  findings  and  orders  shall  be  enforced  as  provided  in  said  act : 
Provided,  however,  That  when  the  President  shall  find  and  certify- 
to  the  Interstate  Commerce  Commission  that  in  order  to  defray  the 
expenses  of  Federal  control  and  operation  fairly  chargeable  to  rail- 
way operating  expenses,  and  also  to  pay  railway  tax  accruals  other 
than  war  taxes,  net  rents  for  joint  facilities  and  equipment,  and 
compensation  to  the  carriers,  operating  as  a  unit,  it  is  necessary  to 
increase  the  railway  operating  revenues,  the  Interstate  Commerce 
Commission  in  determining  the  justness  and  reasonableness  of  any 
rate,  fare,  charge,  classification,  regulation,  or  practice  shall  take 
into  consideration  said  finding  and  certificate  by  the  President, 
together  with  such  recommendations  as  he  may  make. 

Sec.  11.  That  every  person  or  corporation,  whether  carrier  or 
shipper,  or  any  receiver,  trustee,  lessee,  agent,  or  person  acting 
for  or  employed  by  a  carrier  or  shipper,  or  other  person,  who  shall 
knowingly  violate  or  fail  to  observe  any  of  the  provisions  of  this 
act,  or  shall  knowingly  interfere  wdth  or  impede  the  possession,  use, 
operation,  or  control  of  any  railroad  property,  railroad,  or  trans- 
portation system  hitherto  or  hereafter  taken  over  by  the  President, 
or  shall  knowingly  violate  any  of  the  provisions  of  any  order  or  regu- 
lation made  in  pursuance  of  this  act,  shall  be  guilty  of  a  misdemeanor, 
and  shall,  upon  conviction,  be  punished  by  a  fine  of  not  more  than 
$5,000,  or,  if  a  person,  by  imprisonment  for  not  more  than  two 
years,  or  both.  Each  independent  transaction  constituting  a  viola- 
tion of,  or  a  failure  to  observe,  any  of  the  provisions  of  this  act, 
or  any  order  entered  in  pursuance  hereof,  shall  constitute  a  separate 
offense.  For  the  taking  or  conversion  to  his  own  use  or  the  embezzle- 
ment of  money  or  property  derived  from  or  used  in  connection  with 
the  possession,  use,  or  operation  of  said  railroads  or  transportation 
systems,  the  criminal  statutes  of  the  United  States,  as  well  as  the 
criminal  statutes  of  the  various  States  where  applicable,  shall  apply 
to  all  officers,  agents,  and  employees  engaged  in  said  railroad  and 
transportation  service,  while  the  same  is  under  Federal  control, 
to  the  same  extent  as  to  persons  employed  in  the  regular  service  of 
the  United  States.  Prosecutions  for  violations  of  this  act  or  of 
any  order  entered  hereunder  shall  be  in  the  district  courts  of  the 
United  States,  under  the  direction  of  the  Attorney  General,  in 
accordance  with  the  procedure  for  the  collection  and  imposing  of 
fines  and  penalties  now  existing  in  said  courts. 

Sec.  12.  That  moneys  and  other  property  derived  from  the  opera- 
tion of  the  carriers  during  Federal  control  are  hereby  declared  to 
be  the  property  of  the  United  States.  Unless  otherwise  directed  by 
the  President,  such  moneys  shall  not  be  covered  into  the  Treasury, 
but  such  moneys  and  property  shall  remain  in  the  custody  of  the 
same  officers,  and  the  accounting  thereof  shall  be  in  the  same  manner 


19 

and  form  as  before  Federal  control.  Disbursements  therefrom 
shall,  without  further  appi-opriation,  be  made  in  the  same  manner 
as  before  Federal  control  and  for  such  purposes  as  under  the  Inter- 
state Commerce  Commission  classification  of  accounts  in  force 
on  December  twenty-seventh,  nineteen  hundred  and  seventeen, 
are  chargeable  to  operating  expenses  or  to  railway  tax  accruals  and 
for  such  other  purposes  in  connection  with  Federal  control  as  the 
President  may  direct,  except  that  taxes  under  Titles  One  and  Two 
of  the  act  entitled  "An  act  to  provide  revenue  to  defray  war  expenses, 
and  for  other  purposes,"  approved  October  third,  nineteen  hundred 
and  seventeen,  or  any  act  in  addition  thereto  or  in  amendment 
thereof,  shall  bo  paid  by  the  carrier  out  of  its  own  funds.  If  Federal 
control  begins  or  ends  during  the  tax  year  for  which  any  taxes  so 
chargeable  to  railway  tax  accruals  are  assessed,  the  taxes  for  such 
year  shall  he  apportioned  to  the  date  of  the  beginning  or  ending 
of  such  Federal  control,  and  disbursements  shall  be  made  only  for 
that  portion  of  such  taxes  as  is  due  for  the  part  of  such  tax  year 
which  falls  within  the  period  of  Federal  control. 

At  such  periods  as  the  President  may  direct,  the  books  shall  be 
closed  and  the  balange  of  revenues  over  disbursements  shall  be 
covered  into  the  Treasury  of  the  United  States  to  the  credit  of  the 
revolving  fund  created  by  this  act.  If  such  revenues  are  insufficient 
to  meet  such  disbursements,  the  deficit  shall  be  paid  out  of  such 
revolving  fund  in  such  manner  as  the  President  may  direct. 

Sec.  13.  That  all  pending  cases  in  the  courts  of  the  United  States 
affecting  railroads  or  other  transportation  systems  brought  under 
the  act  to  regulate  commerce,  approved  February  fourth,  eighteen 
hundred  and  eighty-seven,  as  amended  and  supplemented,  including 
the  commodities  clause,  so  called,  or  under  the  act  to  protect  trade 
and  commerce  against  unlawful  restraints  and  monopolies,  approved 
July  second,  eighteen  hundred  and  ninety,  and  amendments  thereto, 
shall  proceed  to  final  determination  as  soon  as  may  be,  as  if  the 
United  States  had  not  assumed  control  of  transportation  systems; 
but  in  any  such  case  the  court  having  jurisdiction  may,  upon  the 
application  of  the  United  States,  stay  execution  of  final  judgment  or 
decree  until  such  time  as  it  shall  deem  proper. 

Sec.  11.  That  the  Federal  control  of  railroads  and  transportation 
systems  herein  and  heretofore  provided  for  shall  continue  for  and 
during  the  period  of  the  war  and  for  a  reasonable  time  thereafter, 
which  shall  not  exceed  one  year  and  nine  months  next  following  the 
date  of  the  proclamation  by  the  President  of  the  exchange  of  ratifica- 
tions of  the  treaty  of  peace :  Provided,  however,  That  the  President 
may,  prior  to  July  first,  nineteen  hundred  and  eighteen,  relinquish 
control  of  all  or  any  part  of  any  railroad  or  system  of  transportation, 
further  Federal  control  of  which  the  President  shall  deem  not  needful 


20 

or  desirable ;  and  the  President  may  at  any  time  during  tlie  period  of 
Federal  control  agree  with  the  owners  thereof  to  relinquish  all  or  any 
part  of  any  railroad  or  system  of  transportation.  The  President  may 
lelinquish  all  railroads  and  systems  of  transportation  under  Federal 
control  at  any  time  he  shall  deem  such  action  needful  or  desirable. 
No  right  to  compensation  shall  accrue  to  such  owners  from  and  after 
the  date  of  relinquishment  for  the  property  so  relinquished. 

Sec.  15.  That  nothing  in  this  act  shall  be  construed  to  amend, 
repeal,  impair,  or  affect  the  existing  laws  or  powers  of  the  States  in 
relation  to  taxation  or  the  lawful  police  regulations  of  the  several 
States,  except  wherein  such  laws,  powers,  or  regulations  may  affect 
the  transportation  of  troops,  war  materials,  Government  supplies,  or 
the  issue  of  stocks  and  bonds. 

Sec.  16.  That  this  act  is  expressly  declared  to  be  emergency 
legislation  enacted  to  meet  conditions  growing  out  of  war;  and 
nothing  herein  is  to  be  construed  as  expressing  or  prejudicing  the 
future  policy  of  the  Federal  Government  concerning  the  ownership, 
control,  or  regulation  of  carriers  or  the  method  or  basis  of  the 
capitalization  thereof. 

Approved.  IMarch  21,  lOlS. 

Bv  THE  President  of  the  T'ntted  States  or  America. 
A  PKOCLAMATIOX. 

AT'THORIZTNG  THE  DIRECTOR  GENERAL  OF  RAILROADS  TO  EXERCISE  POWERS. 
CONFERRED    ON    THE   PRESIDENT   BY    CONGRESS. 

Whereas,  by  the  proclamation  dated  December  20,  1917,  taking 
over  each  and  every  system  of  transportation  and  the  appurtenances 
thereof  located  wholly  or  in  part  within  the  boundaries  of  the  conti- 
nental United  States,  it  was  provided  "  that  the  possession,  control, 
operation,  and  utilization  of  such  transportation  systems  hereby  by 
me  undertaken,  shall  be  exercised  by  and  through  William  G. 
McAdoo,  who  is  hereby  appointed  and  designated  Director  General 
of  Railroads,''  and  the  said  William  G.  McAdoo  pursuant  to  said 
proclamation  entered  upon  and  has  continued  to  discharge  the  duties 
of  Director  General  of  Railroads  as  provided  therein;  and 

Whereas,  since  the  issuance  of  said  proclamation  the  Congress  of 
the  United  States  has  passed  an  act  entitled  An  Act  to  Provide  for 
th/i  Operation  of  Trans poi-fation  Systems  while  imder  Federal  Con- 
trol, for  the  Just  Compematlon  of  their  Owners,  ami  for  other  Pur- 
poses,  which  act  was  duly  approved  by  me  on  the  21st  day  of  March, 
1918,  and  is  now  in  full  force  and  effect:  and  in  terms  confers  upon 
the  President  the  powers  specified  therein  and  the  authority  to  carry 
the  same  into  effect:  and 


21 

AYliercas,  it  is  provided  in  Section  8  of  said  act  that  the  President 
may  execute  any  of  the  powers  therein  and  theretofore  granted  him 
with  relation  to  the  Federal  control  of  systems  of  transportation  and 
parts  thereof,  including  railroads,  inland  waterways,  etc.,  through 
such  agencies  as  he  may  determine: 

NoAv,  therefore,  I,  Woodiioav  AVilsox,  President  of  the  United 
Sitates,  under  and  by  virtue  of  the  powers  and  authority  so  vested 
in  me  by  said  act  and  of  all  other  powers  me  hereto  enabling,  do 
hereby  authorize  the  said  William  G.  McAdoo,  Director  General  of 
Railroads  as  aforesaid,  either  personally  or  through  such  divisions, 
agencies,  or  persons  as  he  may  appoint,  and  in  his  own  name  or  in 
the  name  of  such  divisions,  agencies,  or  persons,  or  in  the  name  of 
the  President  to  agree  with  the  carriers  or  any  of  them  or  with  any 
other  person  in  interest,  upon  the  amount  of  compensation  to  be  paid 
pursuant  to  law,  and  to  sign,  seal,  and  deliver  in  his  own  name  or 
in  the  name  of  the  President  or  in  the  name  of  the  United  States 
such  agreements  as  may  be  necessary  and  expedient  with  the  several 
carriers  or  other  persons  in  interest  respecting  compensation,  or  any 
other  matter  concerning  which  it  may  be  necessary  or  expedient  to 
deal  and  to  make  any  and  all  contracts,  agreements,  or  obligations 
necessary  or  expedient  and  to  issue  any  and  all  orders  which  may  in 
any  way  be  found  necessary  and  expedient  in  connection  with  the 
Federal  control  of  systems  of  transportation,  railroads,  and  inland 
waterways  as  fully  in  all  respects  as  the  President  is  authorized  to 
do,  and  generally  to  do  and  perform  all  and  singular  all  acts  and 
things  and  to  exercise  all  and  singular  the  powers  and  duties  which 
in  and  by  the  said  act,  or  any  other  act  in  relation  to  the  subject 
hereof,  the  President  is  authorized  to  do  and  perform. 

In  witness  whereof,  I  have  hereunto  set  my  hand  and  caused  the 
seal  of  the  United  States  to  be  affixed. 

Done  in  the  District  of  Coluuibia  this  29th  day  of  March  in  the 
year  of  our  Lord  one  thousand  nine  hundred  and  eighteen,  and  of 
the  Independence  of  the  United  States  of  America  the  one  hundred 
and  forty -second. 

fSEAL.l  WOODROAV  WiLSON. 

By  the  President: 
Robert  Lansing, 

Secretary  of  State. 

By  the  President  of  the  LTnited  States  of  America. 
A  PROCLAMATIOX. 

POSSESSION    AND   CONTROL  OF   CERTAIN    TRANSPORTATION    SYSTEMS. 

lAliereas  the  Congress  of  the  United  States,  in  the  exercise  of  the 
constitutional  authority  vested  in  them,  by  joint  resolution  of  the 


22 

Senate  and  House  of  Representatives  bearing  date  April  6,  1917,  re- 
solved : 

That  the  state  of  war  between  the  United  States  and  the  Imperial  German 
Government  which  has  thus  been  thrust  upon  the  United  States  is  hereby 
formally  declared ;  and  that  the  President  be,  and  he  is  hereby,  authorized  and 
directed  to  employ  the  entire  naval  and  military  forces  of  the  United  States  and 
the  resources  of  the  Government  to  carry  on  war  against  the  Imperial  German 
Government;  and  to  bring  the  conflict  to  a  successful  termination  all  of  the 
resources  of  the  country  are  hereby  pledged  by  the  Congress  of  the  United 
States. 

And  by  joint  resolution  bearing  date  of  December  7, 1917,  resolved : 

That  a  state  of  war  is  hereby  declared  to  exist  between  the  United  States  of 
America  and  the  Imperial  and  Royal  Austro-Hungarian  Government ;  and  that 
the  President  be,  and  he  is  hereby,  authorized  and  directed  to  employ  the  entire 
naval  and  military  forces  of  the  United  States  and  the  resources  of  the  Govern- 
ment to  carry  on  war  against  the  Imperial  and  Royal  Austro-Hungarian  Gov- 
ernment ;  and  to  bring  the  conflict  to  a  successful  termination  all  the  resources 
of  the  country  are  hereby  pledged  by  the  Congress  of  the  United  States. 

And  whereas  it  is  provided  by  section  1  of  the  act  approved  August 
29,  1916,  entitled  "  An  act  making  appropriations  for  the  support  of 
the  Army  for  the  fiscal  year  ending  June  30,  1917,  and  for  other  pur- 
poses," as  follows: 

The  President  in  time  of  war  is  empowered,  through  the  Secretary  of  War, 
to  take  possession  and  assume  control  of  any  system  or  systems  of  transporta- 
tion, or  any  part  thereof,  and  to  utilize  the  same,  to  the  exclusion,  as  far  as  may 
be  necessary,  of  all  other  traffic  thereon,  for  the  transfer  or  transportation  of 
troops,  war  material,  and  equipment,  or  for  such  other  purposes  connected  with 
the  emergency  as  may  be  needful  or  desirable. 

And  whereas  it  has  now  become  necessary  in  the  national  defense 
to  take  possession  and  assume  control  of  certain  systems  of  transpor- 
tation and  to  utilize  the  same  to  the  exclusion,  as  far  as  may  be  neces- 
sary, of  other  than  war  traffic  thereon,  for  the  transportation  of 
troops,  war  material,  and  equipment  therefor,  and  for  other  needful 
and  desirable  purposes  connected  with  the  prosecution  of  the  war : 

Now,  therefore,  I,  Woodrow  Wilson,  President  of  the  United 
States,  under  and  by  virtue  of  the  powers  vested  in  me  by  the  fore- 
going resolutions  and  statute,  and  by  virtue  of  all  other  powers 
thereto  me  enabling,  do  hereby,  through  Benedict  Crowell,  Acting 
Secretary' of  War,  take  possession  and  assume  control  at  12.01  a.  m., 
on  the  13th  day  of  April,  1918,  of  each  and  every  system  of  transpor- 
tation and  the  appurtenances  tliereof  as  follows,  to  wit :  Clyde  Steam- 
ship Company,  a  corporation  of  the  State  of  Maine;  Mallory  Steam- 
ship Company,  a  corporation  of  the  State  of  Maine;  Merchants  & 
Miners  Transportation  Company,  a  corporation  of  the  State  of 
Maryland;  and  Southern  Steamship  Company,  a  corporation  of  the 
State  of  Delaware,  consisting  of  steamships,  tugs,  lighters,  barges, 


23 

ships,  boats,  and  marine  craft  of  any  and  every  kind  or  description 
and  all  the  tackle,  appurtenances  to  and  appliances  thereof,  together 
with  all  wharves,  docks,  warehouses,  and  other  property  of  every 
kind  or  nature,  real  or  chattel,  owned,  leased,  chartered,  controlled,  or 
used  by  said  companies  or  either  of  them  in  conducting  or  in  connec- 
tion with  said  transportation  systems,  to  the  end  that  such  systems  of 
transportation  be  utilized  for  the  transfer  and  transportation  of 
troops,  war  material,  and  equipment  to  the  exclusion  so  far  as  may  be 
necessary  of  all  other  traffic  thereon ;  and  that  so  far  as  such  exclusive 
use  be  not  necessary  or  desirable  such  systems  of  transportation  be 
operated  and  utilized  in  the  performance  of  such  other  services  as 
the  national  interest  may  require  and  of  the  usual  and  ordinary  busi- 
ness and  duties  of  conunon  carriers. 

It  is  hereby  directed  that  the  possession,  control,  operation,  and 
utilization  of  such  transportation  systems,  hereby  by  me  undertaken, 
shall  be  exercised  by  and  through  William  G.  McAcloo,  who  has  been 
duly  appointed  and  designated  Director  General  of  Railroads.  Said 
Director  General  may  perform  the  duties  imposed  upon  him  so  long 
and  to  such  extent  as  he  shall  determine,  through  the  boards  of  di- 
rectors, officers,  and  employees  of  said  systems  of  transportation. 
Until  and  except  so  far  as  said  Director  General  shall  from  time  to 
time  by  general  or  special  orders  otherwise  provide,  the  boards  of 
directors,  officers,  and  employees  of  said  transportation  systems  shall 
continue  the  operation  thereof  in  the  usual  and  ordinary  course  of 
the  business  of  common  carriers  in  the  names  of  their  respective 
companies. 

Until  and  except  so  far  as  said  Director  General  shall  from  time 
to  time  otherwise  by  general  or  special  orders  determine,  such  sys- 
tems of  transportation  shall  remain  subject  to  all  existing  statutes 
of  the  United  States  and  orders  of  the  Interstate  Commerce  Com- 
mission, and  to  all  statutes  and  orders  of  regulating  commissions  of 
the  various  States  in  which  said  systems  or  an}^  part  thereof  may  be 
situated.  But  any  orders,  general  or  special,  hereafter  made  by  said 
Director  General,  shall  have  paramount  authority  and  be  obeyed 
as  such. 

The  Director  General  shall,  as  soon  as  may  be  after  having  as- 
sumed such  possession  and  control,  enter  upon  negotiations  with  the 
several  companies  looking  to  agreements  for  just  and  reasonable  com- 
pensation for  the  possession,  use,  and  control  of  their  respective 
properties  and  fix  such  just  compensation  as  provided  by  law. 

But  nothing  herein  contained,  expressed  or  implied,  or  hereafter 
done  or  suffered  hereunder,  shall  be  deemed  in  any  way  to  impair 
the  rights  of  the  stockholders,  bondholders,  creditors,  and  other  per- 
sons having  interests  in  said  systems  of  transportation  or  in  the 


24 

profits  thereof  to  receive  just  and  atlequate  compensation  for  the  use 
and  control  and  operation  of  their  property  hereby  assumed. 

That  none  of  said  carriers  while  under  Federal  control  shall,  with- 
out the  prior  approval  of  the  President,  declare  or  pay  any  dividends 
in  excess  of  its  regular  rate  of  dividends  during  the  three  years 
ended  June  thirtieth,  nineteen  hundred  and  seventeen:  Provided^ 
Jwwever,  That  such  carriers  as  have  paid  no  regular  dividends  or  no 
dividends  during  said  period  may,  Avith  the  prior  approval  of  the 
President,  pay  dividends  at  such  rate  as  the  President  may  determine. 

Except  with  the  prior  written  assent  of  said  Director  General,  no 
attachment  by  mesne  process  or  on  execution  shall  be  levied  on  or 
against  any  of  the  j^roperty  used  by  any  of  said  transportation  sys- 
tems in  the  conduct  of  their  business  as  common  carriers;  but  suits 
may  be  brought  by  and  against  said  carriers  and  judgments  rendered 
as  hitherto  until  and  except  so  far  as  said  Director  General  may,  by 
general  or  special  orders,  otherwise  determine. 

From  and  after  12.01  a.  m.  on  said  13th  day  of  April,  1918,  all 
transportation  systems  included  in  this  order  and  proclamation  shall 
conclusively  be  deemed  Avithin  the  possession  and  control  of  said 
•Director  General  without  further  att  or  notice. 

In  witness  whereof  I  have  hereunto  set  my  hand  and  caused  the 
seal  of  the  United  States  to  be  affixed. 

Done  by  the  President,  through  Benedict  Crowell.  Acting  Secre- 
tary of  War,  in  the  District  of  Columbia,  this  11th  day  of  April,  in 
the  year  of  our  Lord  one  thousand  nine  hundred  and  eighteen,  and 
of  the  independence  of  the  United  States  the  one  hundred  and  forty- 
second. 

[seal.]  Woodrow  Wilsox. 

By  the  President : 
Egbert  Lansing, 

^erretory  of  State, 
Benedict  Croavell,, 

Acting  Secretary  of  ^V(^:r. 


By   the    Presidext   of   the    Txited    States   of  America. 
A  PROCLAMATION. 

POSSESSION    AM)    CONTROL   OF   THE   TRANSPORTATION    SYSTEM   OF   THE 
150STON.  CAPE  COD  «fc  NEW  YORK  CANAL  CO. 

Whereas  the  Congress  of  the  United  States,  in  tho  exorcise  of  the 
constitutional  authority  vested  in  them,  by  joint  resolution  of  tho 
vScnato  and  House  of  Pepresentatives  bearing  date  of  April  6,  1917, 
resolv(Ml : 

That  tho  state  of  war  betweon  the  Ignited  States  and  the  Imperial  CJerman  Govern- 
ment whirh  has  thus  been  thrust  upon  the  I'nited  States  is  hereby  formally  declared; 


25 

and  that  the  President  be,  and  he  is  hereby,  authorized  and  directed  to  employ  the 
entire  naval  and  militaiy  forces  of  the  United  States  and  the  resources  of  the  Gov- 
ernment to  carry  on  war  against  the  Imperial  German  Government;  and  to  bring  the 
conflict  to  a  successful  termination  all  of  the  resources  of  the  country  are  hereby 
pledged  by  the  Congress  of  the  United  States. 

And  by  joint  resolution  bearing  date  of  December  7,  1917,  resolved: 

That  a  state  of  war  is  hereby  declared  to  exist  between  the  United  States  of  Amer- 
ica and  the  Imperial  and  Royal  Austro-IIungarian  Government;  and  that  the  Presi- 
dent be,  and  he  is  hereby,  authorized  and  directed  to  employ  the  entire  naval  and 
military  forces  of  the  United  States  and  the  resources  of  the  Government  to  carry  on 
a  war  against  the  Imperial  and  Royal  Austro-Hungarian  Government;  and  to  bring 
the  conflict  to  a  successful  termination  all  the  resom'ces  of  the  country  are  hereby 
pledged  by  the  Congress  of  the  United  States. 

And  whereas  it  is  provided  by  section  1  of  the  act  approved  August 
29,  1916,  entitled  ''An  act  making  appropriations  for  the  support  of 
the  Army  for  the  fiscal  year  ending  June  30,  1917,  and  for  other 
purposes,"  as  follows: 

The  President  in  time  of  war  is  empowered,  through  the  Secretary  of  War,  to  take 
possession  and  assume  control  of  any  system  or  systems  of  transportation,  or  any  part 
thereof,  and  to  utilize  the  same,  to  the  exclusion,  as  far  as  may  be  necessary,  of  all 
other  traffic  thereon,  for  the  transfer  or  transportation  of  troops,  war  material,  and 
equipment,  or  for  such  other  purposes  connected  yvith  the  emergency  as  may  be 
needful  or  desirable. 

And  whereas  it  has  now  become  necessary  in  the  national  defense 
to  take  possession  and  assume  control  of  certain  systems  of  trans- 
portation and  to  utilize  the  same,  to  the  exclusion,  as  far  as  may  be 
necessary,  of  other  than  war  traffic  thereon,  for  the  transportation  of 
troops,  war  material,  and  equipment  therefor,  and  for  other  needful 
and  desirable  pui'poses  connected  with  the  prosecution  of  the  war: 

Now,  therefore,  I,  Woodrow  Wilson,  President  of  the  United 
States,  under  and  by  virtue  of  the  powers  vested  in  me  by  the  fore- 
going resolutions  and  statute,  and  by  virtue  of  all  other  powers 
thereto  me  enablmg,  do  hereby,  through  Newton  D.  Baker,  Secretary 
of  War,  take  possession  and  assume  control  at  12.01  a.  m,  on  the 
25th  day  of  July,  1918,  of  the  following  system  of  transportation  and 
the  appurtenances  thereof,  to  wit,  the  canal  and  other  property  of 
the  Boston,  Cape  Cod  &  New  York  Canal  Co.,  a  corporation  organized 
under  the  laws  of  the  Commonwealth  of  Massachusetts,  consisting  of 
a  ship  canal  extending  from  Cape  Cod  Bay  to  Buzzards  Ba}^  in  Massa- 
chusetts, with  all  the  appurtenances  and  equipment  of  said  canal, 
including  all  the  lands,  easements,  wharves,  docks,  buildings,  tugs, 
barges,  ships,  boats,  tackle,  appliances,  and  all  other  property  of 
whatsoever  kind  owned,  leased,  chartered,  controlled,  or  used  b}^  the 
said  corporation  in  the  maintenance  and  operation  of  said  canal  or  in 
connection  with  the  towage,  pilotage,  or  anchorage  of  vessels  pass- 
ing through  the  same. 


26 

To  the  end  that  said  system  of  transportation  be  utilized  for  the 
transfer  and  transportation  of  troops,  war  material,  and  equipment, 
to  the  exclusion  so  far  as  may  be  necessary  of  all  other  traffic  thereon, 
and  that  so  far  as  such  exclusive  use  be  not  necessary  or  desirable  such 
system  of  transportation  be  operated  and  utilized  in  the  performance 
oi  such  other  services  as  the  national  interest  may  require  and  of  the 
usual  and  ordinary  operation  of  the  said  transportation  system. 

It  is  hereby  directed  that  the  possession,  control,  operation,  and 
utilization  of  such  transportation  system,  hereby  by  me  undertaken, 
shall  be  exercised  by  and  through  William  G.  McAdoo,  who  has  been 
duly  appointed  and  designated  Director  General  of  Railroads.  Said 
Director  General  may  perform  the  duties  imposed  upon  him,  so  long 
and  to  such  extent  as  he  shall  determine,  through  the  board  of  di- 
rectors, officers,  and  employees  of  said  corporation,  or  through  such 
other  agents  or  agencies  as  he  may  from  time  to  time  appoint.  Until 
and  except  so  far  as  said  Dhector  General  shall  from  time  to  time  by 
general  or  special  ordei-s  otherwise  provide,  the  board  of  dhectors, 
officers,  and  employees  of  said  corporation  shall  continue  the  usual 
and  ordinary  operation  of  said  transportation  system  in  the  name  of 
said  corporation. 

Until  and  except  so  far  as  said  Director  General  shall  from  time  to 
time  otherwise  by  general  or  special  orders  determine,  such  system  of 
transportation  shall  remain  subject  to  all  existing  statutes  of  the 
United  States  and  to  all  statutes  and  orders  of  regulating  commis- 
sions of  the  Commonwealth  of  Massachusetts;  but  any  orders,  general 
or  special,  hereafter  made  by  said  Director  General  shall  have  para- 
mount authority  and  be  obeyed  as  such. 

The  Director  General  shall,  as  soon  as  may  be  after  havmg  assumed 
sucli  possession  and  control,  enter  upon  negotiations  with  the  said 
corporation  looking  to  an  agreement  for  just  and  reasonable  com- 
pensation for  the  possession,  use,  and  control  of  its  property. 

Except  with  the  prior  written  assent  of  said  Director  General,  no 
attachment  by  mesne  process  or  on  execution  shall  during  Federal 
control  be  levied  on  or  against  any  of  the  property  of  said  corporation 
or  used  by  said  transportation  system  in  the  maintenance  and  opera- 
tion of  said  canal  while  under  Federal  control;  but  suits  may  be 
brought  by  and  against  the  said  corporation  and  judgments  rendered 
as  hitherto  until  and  except  so  far  as  said  Director  General  may,  by 
general  or  special  orders,  otherwise  determine. 

From  and  after  12.01  a.  m.,  on  said  25th  day  of  July,  1918,  the 
transportation  system  included  in  this  order  and  proclamation  shall 
conclusively  be  deemed  within  the  possession  and  control  of  said 
Director  General  without  further  act  or  notice. 

In  witness  whereof  I  have  hereunto  set  my  hand  and  caused  the 
seal  of  the  United  States  to  be  affixed. 


27 

Done  by  the  President,  through  N"e\,  .on  D.  Bakjr,  Secretary  of 
War,  in  the  District  of  Columbia  this  22d  day  of  July,  in  the  year  of 
our  Lord  one  thousand  nine  liundred  and  eighteen  and  of  the  inde- 
pendence of  the  I'nitod  States  the  one  hundred  and  forty-third. 
[seal.]  Woodrow  Wilson. 

By  the  President: 
Frank  L.  Polk, 

Acting  Secretary  of  State. 
NEvrTON  D.  Baker, 

Secretary  of  War. 


possession  and  control  of  a:\rerican  ratlway  express  company. 

By  the  President  of  the  United  States  of  America. 

A  PKOCLAMATIOX. 

POSSESSIOX    A?«D   CONTROL  OF   A   CERTAIN   TRANSPORTATION    SYSTEM. 

Whereas  the  organizations  for  the  conduct  of  the  express  business 
over  numerous  systems  oi  transportation  which  have  been  duly  placed 
under  Federal  control,  and  pertaining  to  such  systems  of  transpor- 
tation, have  been  consolidated  into  the  American  Eailway  Express 
Company  which  has  been  made  the  sole  agent  of  the  Government  for 
conducting  tlie  express  business,  with  the  result  that  the  entire  tran  - 
portation  system  of  said  Express  Company  has  been  necessarily  i  i 
substance  and  effect  placed  under  Federal  control,  and 

Whereas  it  is  desirable,  in  order  to  administer  to  the  best  advan- 
tage the  transportation  business  and  operations  of  the  American  Rail- 
way Express  System  to  make  it  specifically  clear  by  this  Proclama- 
tion that  the  President  has  the  possession,  use,  control  and  operation 
of  the  entire  transportation  system  of  the  American  Eailway  Express 
Company, 

Now,  Therefore,  I,  Woodrow  Wilson,  President  of  the  United 
States,  under  and  by  virtue  of  the  powers  vested  in  me  by  law  do 
hereby,  through  Xewton  D.  Baker,  Secretary  of  War,  take  possession, 
and  assume  control  at  12  o'clock  noon  on  the  18th  day  of  November, 
1918,  of  that  certain  system  of  transportation  called  the  American 
Railway  Express  Company  and  all  of  its  appurtenances  and  property 
of  every  kind  or  nature,  directly  or  indirectly,  owned,  leased,  char- 
tered, controlled,  or  used  in  the  conduct  of,  or  in  connection  with,  its 
express  business. 

It  is  hereby  further  directed  that  the  possession,  control,  operation 
and  utilization  of  said  express  transportation  system  hereby  by  me 
undertaken  shall  be  exercised  by  and  through  William  G.  McAdoo, 
heretofore  appointed  Director  General  of  Railroads,  Avith  all  the 
powers  conferred  upon  him  by  the  said  Proclamations  of  December 


28 

26.  1917,  and  March  29,  1918,  respectively,  together  with  all  and  sin- 
gular the  powers  conferred  upon  the  President  by  the  Act  of  Con- 
gress entitled,  "An  Act  to  Provide  for  the  Operation  of  Transporta- 
tion Systems  while  under  Federal  Control,  for  the  Just  Compensa- 
tion of  their  Owners,  and  for  Other  Purposes,"  approved  March  21, 
1918. 

The  said  Director  General  of  Kailroads  may  perform  the  duties 
hereby  imposed  upon  him,  so  long  and  to  such  an  extent  as  he  shall 
determine,  through  the  Board  of  Directors,  officers  and  employees 
of  the  said  American  Railway  Express  Company,  under  the  contract 
already  made,  and  dated  the  twenty-sixth  day  of  June,  1918,  be- 
tween the  said  Director  General  of  Railroads  and  said  American 
Railway  Express  Company,  and  until  and  except  so  far  as  said 
Director  General  shall  from  time  to  time  by  general  or  special 
orders  otherwise  provide,  the  P>oard  of  Directors,  officers  and  em- 
ployees of  said  Company  shall  continue  the  operation  thereof  in 
the  usual  and  ordinar}^  course  under  such  contract. 

From  and  after  12  o'clock  noon  on  said  18th  November,  1918.  the 
said  transportation  system  shall  conclusively  be  deemed  within  the 
possession  and  control  of  said  Director  General  without  further  act 
or  notice. 

In  Witness  Whereof,  I  have  hereunto  set  my  hand  and  caused 
the  Seal  of  the  United  States  to  be  affixed. 

Done  by  the  President,  through  Newton  D.  Baker,  Secre- 
tary of  War,  in  the  District  of  Columbia,  this  16th  day 

[seal.]  of  November,  in  the  year  of  our  Lord,  one  thousand 
nine  hundred  and  eighteen,  and  of  the  independence  of 
the  United  States  the  one  hundred  and  forty-third. 

WOODROW  WiLSOX. 

B}'  tlie  President : 
Robert  Lansing, 

Secrttary  of  State. 
Newtox  D.  Baker, 

Secretary  of  ^Var. 

(No.  1497.); 


Order  of  Eelixquishment. 

Whereas  in  the  exercise  of  the  war  power  by  proclamation  dated 
April  11,  1918,  the  President  of  the  United  States  through  Benedict 
Crowell,  Acting  Secretary  of  War,  took  possession  and  assumed  con- 
trol as  of  the  thirteenth  day  of  April,  1918,  of  the  following  sys- 
tems of  transportation  and  appurtenances  thereof,  to  wit:  Clyde 
Steamship  Company,  a  corporation  of  the  State  of  Maine;  Mallory 
Steamship  Company,  a  corporation  of  the  State  of  Maine;  Mer- 
chants and  Miners  Transportation  Company,  a  corporation  of  the 
State  of  Maryland ;  and  Southern  Steamship  Company,  a  corpora- 
tion of  the  State  of  Delaware;  consisting  of  steamships,  tugs,  lighters, 
barges,  ships,  boats,  and  marine  craft  of  any  and  every  kind  or 
description  and  all  the  tackle,  appurtenances  to  and  appliances 
thereof,  together  Avith  all  wharves,  docks,  warehouses,  and  other 
property  of  every  kind  or  nature,  real  or  chattel,  owned,  leased, 
chartered,.eontroiled,  or  used  by  said  companies  or  either  of  them 
in  conducting  or  in  connection  with  said  transportation  systems  to 
the,  end  that  such  systems  be  utilized  for  the  transfer  and  transporta- 
tion of  troops,  war  material,  and  equipment,  to  the  exclusion  as 
far  as  may  be  necessary,  of  all  other  traffic  thereon,  etc.,  the  said 
possession,  control,  operation,  and  utilization  to  be  exercised  by 
and  through  the  undersigned  William  G.  McAdoo,  Director  General 
of  Railroads;  and 

Whereas  the  emergency  which  made  such  exercise  of  the  war 
power  necessary  and  desirable  has  by  reason  of  the  signing  of  an 
armistice  with  the  enemies  of  the  United  States  ceased,  and  the  use 
of  the  transportation  systems  aforesaid  is  no  longer  necessary  for 
the  transfer  and  transportation  of  troops,  war  material,  and  equip- 
ment or  otherwise  for  the  war  purposes  of  the  Government : 

Now,  Therefore,  I,  William  G.  McAdoo,  Director  General  of 
Eailroads,  by  virtue  of  the  power  conferred  upon  me  by  the  President 
of  the  United  States,  do  hereby  relinquish  from  Federal  control  effec- 
tive December  6,  1918.  at  12  :  01  a.  m.,  the  said  Clyde  Steamship  Com- 
pany, Mallory  Steamship  Company,  Merchants  and  Miners  Trans- 
portation Company,  and  Southern  Steamship  Company,  together 
with  all  of  the  steamships,  tugs,  lighters,  barges,  ships,  boats,  and 
marine  craft  of  any  and  every  kind  or  description  and  all  the  other 

(29) 


30 

tackle,  appurtenances,  wharves,  docks,  warehouses,,  and  other  prop- 
erty as  described  and  set  forth  in  the  proclamation  of  the  President, 
dated  April  11,  1918,  as  aforesaid,  and  restore  the  same  to  the  pos- 
session of  their  respective  owners. 

For  accounting  purposes,  this  order  may  be  treated  as  eflPecti\-e 
December  first  at  12 :  01  a.  m. 

Given  under  my  hand  as  Director  General  of  Railroads,  this  fifth 
day  of  December,  1918. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Opinion  Sustaixixg  the  authority  of  W.  G.  McAdoo,  Director 
General  of  Railroads,  re  Ge:neral  Orders  18  and  18-A,  and 

THEIR  VALIDITY  UNDER  THE  FEDERAL- CoNTROL  AcT  APPRO\'ED  MaRCH 

21,  1918,  and  the  constitutionality  of  said  act,  by  honorable 
Jacob  Trieber,  United  States  District  Judge  for  the  Eastern 
District  of  Arkansas,  sitting  in  the  Eastern  Division  of  the 
Eastern  District  of  Missouri. 

In  the  District  Court  of  the  United  States  for  the  Eastern  Division  of  the 
Eastern  District  of  Missouri. 


Nellie  Wainwright,  Administratrix,  Etc.,  Plaintiff. 

V. 

Pennsylvania  Railroad  Company,  Defendant. 


Xo.  4893. 


The  plaintiff  on  May  6,  1918,  instituted  this  action  to  recover  dam- 
ages under  the  employers'  liability  act  for  the  death  of  her  husband, 
alleged  to  have  resulted  from  injuries  sustained  on  December  26, 1917, 
while  in  the  service  of  the  defendant  and  while  both  were  engaged 
in  interstate  commerce.  The  defendant  filed  a  plea  in  abatement, 
alleging  as  causes: 

1.  The  Pennsylvania  Railroad  Company,  defendant  herein,  is  a 
common  carrier  now  under  control  of  the  United  States  Railroad 
Administration. 

2.  The  plaintiff  herein,  and  the  deceased.  John  Wainwright,  re- 
sided at  the  time  of  the  accrual  of  the  cause  of  action  stated  in  the 
plaintiff's  petition  in  the  city  of  Pittsburgh,  State  of  Pennsylvania. 

3.  That  the  i^lace  of  trial,  to  wit:  City  of  St.  Louis,  State  of 
Missouri,  is  far  removed  from  the  place  where  the  plaintiff  was  in- 
jured and  resided  at  the  time  of  the  accrual  of  this  action,  to  wit: 
City  of  Pittsburgh,  Pa. ;  that  the  trial  of  this  suit  in  the  city  of  St. 
Louis,  Mo.,  will  necessitate  the  summoning  of  men,  to  wit:  Engine- 
man  N.  Carlson,  Fireman  W.  J.  Corbett,  Conductor  W.  Baker,  and 
Brakeman  J.  Wainwright,  now  operating  trains  in  points  distant 
from  the  place  of  trial  and  keep  them  for  a  considerable  period  of 
time  from  said  work  of  operating  trains,  all  of  which  will  greatly 
prejudice  the  interests  of  the  Government  in  maintaining  railroad 
traffic  for  war  purposes. 

And  the  defendant  further  states  that  the  above  specifications  of 
facts,  enumerated  above,  constitute  to  all  intents  and  purposes  a  case 
of  abatement  under  General  Order  Xo.  26,  promulgated  by  the 
United  States  Railroad  Administration  on  May  23,  1918,  and  Gen- 

(31) 


32 

eral  Order  No.  18-A,  promulgated  l>y  the  United  States  Railroad 
Administration  on  May  18,  1918. 

To  this  plea  the  plaintiff  demurred. 

The  general  orders  pleaded  by  the  defendant  were  promulgated 
by  the  Director  General  of  the  United  States  Railroad  Administra- 
tion.   General  Order  No.  18,  made  on  April  9,  1918,  reads: 

Whereas  the  act  of  Congress  approved  March  21,  1918,  entitled  "  An  act  to 
provide  for  the  operation  of  transportation  systems  while  under  Federal  con- 
trol," provides  (sec.  10),  "That  carriers  while  under  Federal  control  shall  be 
subject  to  all  laws  and  liabilities  as  common  carriers,  whether  arising  under 
State  or  Federal  laws  or  at  common  law,  except  in  so  far  as  may  be  inconsis- 
tent with  the  provisions  of  this  act  or  with  any  order  of  the  President,  *  *  *. 
But  no  process,  mesne  or  final,  shall  be  levied  against  any  property  under  such 
Federal  control  "  ;  and 

Whereas  it  appears  that  suits  against  the  carriers  for  personal  injuries, 
freight  and  damage  claims  are  being  brought  in  States  and  jurisdictions  far 
j-emote  from  the  place  where  plaintiffs  reside  or  where  the  cause  of  action 
arose,  the  effect  thereof  being  that  men  operating  the  trains  engaged  in  hauling 
war  materials,  troops,  munitions,  or  supplies  are  required  to  leave  their  trains 
and  attend  court  as  witnesses,  and  travel  sometimes  for  hundreds  of  miles 
from  their  work,  necessitating  absence  from  their  trains  for  days  and  some- 
times for  a  week  or  more,  which  practice  is  highly  prejudicial  to  the  just 
interests  of  the  Government  and  seriously  interferes  with  the  physical  operation 
of  the  railroads;  and  the  practice  of  suing  in  remote  jurisdictions  is  not 
necessary  for  the  protection  of  the  rights  or  the  just  interests  of  plaintifts ; 

It  is  therefore  ordered,  That  all  suits  against  carriers  while  under  Federal 
control  must  l)e  brought  in  the  county  or  district  where  the  plaintiff  resides  or 
in  the  county  or  district  where  the  cause  of  action  arose. 

On  April  18,  1918,  this  general  order  was  amended  by  General 
Order  No.  18-A,  as  follows: 

It  is  therefore  ordered  that  all  suits  against  carriers  while  under  Federal 
control  must  ))e  brought  in  the  county  or  district  where  the  plaintiff  resided  at 
the  time  of  the  accrual  of  the  cause  of  action  or  in  the  county  or  district  where 
the  cause  of  action  arose. 

As  this  action  was  instituted  after  the  pronudgation  of  General 
Orders  Nos.  18  and  18-A,  and  no  question  of  limitation  can  possibly 
arise,  it  is  unnecessary  to  refer  to  or  pass  upon  the  effect  of  General 
Order  No.  20  in  disposing  of  these  pleas. 

These  general  orders  are  claimed  to  have  been  made  by  authority 
vested  in  the  President  and  the  Director  General  designated  by  the 
President  by  the  appropriation  act  of  August  29,  191(),  ch.  418,  39 
St.  C45  and  the  act  of  Congress  entitled,  "An  act  to  provide  for  the 
operation  of  transportation  systems  while  under  P'ederal  control,  for 
the  just  compensation  of  their  owners,  and  for  other  purposes,"  ap- 
proved March  21,  1918. 

Browning,  Mason  &  Altman.  of  St.  Louis,  Mo.,  for  plaintiff. 
P\)rdyce,  Holliday  &  White,  of  St.  Louis,  Mo.,  for  defendant. 
Mr.  E.  H.  Seneff'and  Mr.  D.  P.  Williams,  of  Pittsburgh,  Pa., 
by  leave  of  the  court  filed  a  brief  as  amivi  curi(E. 


33 

Trieber,  district  judge,  after  stating  the  facts  as  above. 
The  demurrer  to  the  plea  raises  two  questions  of  hiw  : 

1.  Assuming  that  the  act  of  Congress  autliorizes  the  President  and 
the  agencies  appointed  by  him  to  make  these  regulations,  Is  the  act 
warranted  by  the  Constitution? 

2.  Does  the  act  vest  the  power  to  make  these  regulations  in  the 
President  or  the  Director  General? 

At  the  outset  of  this  opinion,  it  is  proper  to  state  that,  as  this  action 
was  originally  instituted  in  a  court  of  the  United  States,  the  question 
Avhether  Congress  may  authorize  the  general  orders  in  question  to  ap- 
ply to  the  courts  of  the  States  is  not  involved,  and  therefore  can  not 
be  determined  in  this  proceeding.  What  is  stated  in  this  opinion  is 
necessarily  intended  to  apply  solely  to  actions  instituted  in  the  na- 
tional courts.  Whether,  under  the  war  power.  Congi'ess  may  enact 
laws  affecting  the  maintenance  of  actions  in  the  State  courts,  can  only 
be  determined  when  it  properly  comes  before  the  court.  To  express 
an  opinion  on  that  question  in  the  instant  case  would  be  clearly 
obiter^  and  the  court,  for  this  reason,  limits  this  opinion  to  actions 
instituted  in  the  national  courts. 

•HAS  CONGRESS  THE  POWER  aX)  EXACT  THIS  LEGISLATION,  ASSUMING  THAT 
IT  Vr^TS  THE  POWER  CLAIMED  ON  BEHALF  OF  THE  DEFENDANT? 

That  Congi-ess  possesses  the  power  to  enact  legislation  of  this  na- 
ture, under  the  Constitution,  can  not  be  questioned  at  this  day.  There 
are  several  grounds  upon  which  it  must  be  sustained. 

1.  In  McCuUoch  V.  Maryland,  17  U.  S.  316,  421,  Chief  Justice  :»Iar- 
shall  delivering  the  opinion  of  the  court,  it  was  held  as  a  proper 
canon  of  the  interpretation  of  the  powers  of  Congi-ess  under  the  Na- 
tional Constitution,  among  others :  "  Let  the  end  be  legitimate,  let  it 
be  within  the  scope  of  the  Constitution,  and  all  means  which  are  ap- 
propriate, which  are  plainly  adapted  to  the  end,  w^hich  are  not  pro- 
hibited, but  consistent  Avith  the  letter  and  spirit  of  the  Constitution, 
are  constitutional.'' 

This  rule  of  construction  has  never  been  doubted  or  questioned  by 
any  subsequent  decision,  but  has  been  uniformly  followed,  whenever 
it  has  been  before  the  courts,  and  nmst,  therefore,  be  accepted  as  ele- 
mentary in  the  construction  of  the  National  Constitution.  That  there 
is  nothing  in  the  Constitution  prohibiting  Congress  from  determining 
the  venue  in  civil  actions  is  beyond  question. 

Article  1,  section  8,  clause  11,  of  the  Constitution  grants  Congress 
the  power  to  declare  war,  and  clause  12  of  that  section  empowers  it 
to  raise  and  support  armies.  That  by  virtue  of  these  provisions  of 
the  Constitution,  Congress  may  use  all  means  which  are,  in  its  opin- 
ion, appropriate  to  that  end  and  not  prohibited  by  some  provision 
105880°— 10 3 


34 

of  the  Constitution  has,  under  the  rule  established  in  McCulloch  v. 
Maryland,  been  settled  in  Miller  v.  United  States,  78  U.  S.  268; 
Stewart  v.  Kalin,  78  U.  S.  493,  506,  507;  reaffirmed,  in  May  field  v. 
Richards,  115  U.  S.  137.  In  Steioart  v.  Kahn,  it  was  held :  "  The 
measures  to  be  taken  in  carrying  on  war  and  to  suppress  insurrection 
are  not  defined.  The  decision  of  all  such  questions  rests  wholly  in 
the  discretion  of  those  to  whom  the  substantial  powers  involved  are 
confided  by  the  Constitution. 

"In  the  latter  case  the  power  is  not  limited  to  victories  in  the  field 
and  the  dispersion  of  the  insurgent  forces.  It  carries  with  it  inher- 
ently the  power  to  guard  against  the  immediate  renewal  of  the  con- 
flict and  to  remedy  the  evils  which  have  arisen  from  its  rise  and 
progress." 

The  same  principle  was  recognized  in  the  Legal  Tender  cases,  79 
U.  S.  457,  539,  where  it  was  held :  "  Before  we  can  hold  the  legal  ten- 
der acts  unconstitutional,  we  must  be  convinced  they  were  not  appro- 
priate means,  or  means  conducive  to  the  execution  of  any  or  all  of 
the  powers  of  Congress,  or  of  the  Government,  not  appropriate  in 
any  degree  (for  we  are  not  judges  of  the  degree  of  appropriateness), 
or  we  must  hold  that  they  were  prohibited.  This  brings  us  to  the 
inquiry  whether  they  were,  when  enacted,  appropriate  instrumentali- 
ties for  carrying  into  effect,  or  executing  any  of  the  known  powers  of 
Congi-ess,  or  of  any  department  of  the  Government.  Plainly  to  this 
inquiry,  a  consideration  of  the  time  when  they  were  enacted,  and  of 
the  circumstances  in  which  the  Government  then  stood,  is  important. 
It  is  not  to  be  denied  that  acts  may  be  adapted  to  the  exercise  of  law- 
ful power,  and  appropriate  to  it,  in  seasons  of  exigency,  which  would 
be  inappropriate  at  other  times."  See  also  the  address  of  former 
Justice  Hughes  on  the  "  War  powers  under  the  Constitution,"  volume 
4-2,  American  Bar  Association,  232, 

Whether  the  exigencies  existed  when  Congress  enacted  this  statute 
Avas  for  that  body  to  determine  and  can  not  be  questioned  by  the 
courts,  if  there  is  any  substantial  ground  therefor.  McCulloch  v. 
Maryland,  supra,  Lottery  cases,  188  U.  S.  321,  355 ;  McDermott  v. 
Wisconsin,  228  IT.  S.  115,  128.  That  there  was  substantial  ground 
for  the  enactment  of  the  statute  requires  no  argument.  The  condi- 
tions so  graphically  described  in  the  Legal  Tender  cases  (p.  540) 
prevail  now,  and  it  will  conduce  to  brevity  to  refer  to  what  was 
there  said,  without  quoting  it  in  this  opinion. 

That  the  act  was  enacted  under  the  war  power  is  not  only  apparent 
from  its  content,  but  it  is  expressly  declared  in  section  16  of  the  act, 
"  to  be  emergency  legislation,  enacted  to  meet  conditions  growing  out 
of  the  war,"  and  section  14  provides  that  the  Federal  control  of  rail- 
roads shall  continue  not  exceeding  one  year  and  nine  months  after 
the  ratification  of  the  treaty  of  peace. 


35 

2.  Another  ground  upon  which  the  act  nuist  be  sustained  is  that  the 
right  to  maintain  an  action  in  any  particuhir  court  is  always  subject 
to  tlie  legislative  will.  It  is  only  when  one  is  deprived  of  all  rights  to 
maintain  an  action  for  the  redress  of  his  wrongs  that  the  statute 
would  be  obnoxious  to  the  fifth  amendment  to  the  Constitution.  Con- 
gress has  uniformly  exercised  that  power  by  providing  in  what  courts 
suits  may  be  maintained,  and  in  no  instance  has  such  an  act  been  held 
void.  Among  the  many  is  the  act  of  March  3,  1873,  17  St.  509, 
authorizing  the  Attorney  General  to  institute  suits  against  the  Union 
Pacific  Railroad  Co.  for  certain  acts  in  any  circuit  court  of  the  United 
States.  The  constitutionality  of  this  act  was  sustained  in  United 
States  V.  Union  PcK-iflc  R.  R.,  98  U.  S.  569.  The  Carmack  amend- 
ment to  the  interstate-commerce  act,  approved  June  29,  1906,  34  St. 
595,  authorizes  an  action  against  the  receiving  carrier,  regardless  of 
the  fact  that  the  loss  or  damage  sued  for  was  caused  by  a  connecting 
carrier.  Its  constitutionality  was  sustained  in  Atlantic  Coast  Line 
V.  Riverside  -MlUs,  219  U.  S.  186.  The  act  of  February  21,  1905, 
chapter  778,  33  Statutes  811,  vested  the  exclusive  jurisdiction  of  ac- 
tions on  bonds  of  contractors  for  the  construction  of  public  works 
in  the  courts  of  the  district  in  which  said  contract  was  to  be  per- 
formed and  executed.  The  validity  of  the  act  was  sustained  in 
United  States  v.  Congress  Constrmtlon  Co.,  222  U.  S.  199,  203;  Hoj)- 
kins  V.  Ellington  &  Guy,  216  U.  S.  655;  Ex  parte  Southwestern 
Surety  Ins.  Co.,  247  U.  S.  19.  The  Clayton  Act,  approved  October 
15,  1914,  38  Statutes  730,  737,  section  12,  expressly  authorizes  an  ac- 
tion by  the  Government,  not  only  in  the  district  wliereof-  the  defend- 
ant corporation  is  an  inhabitant,  but  in  any  district  where  it  may  be 
found  or  does  business.  Section  15  of  that  act  authorizes  service  of 
process  on  other  parties  than  the  offending  corporation,  who  are 
properly  joined,  in  any  district  where  found.  The  validity  of  these 
provisions  was  sustained  in  Southern  Photo  Materkd  Co.  v.  Eastma.n 
Kodak  Co.  (D.  C),  234  Fed.  955. 

Every  State  of  the  Union  has  provided  by  statute  the  venue  for 
civil  actions  in  its  courts.  In  some  States  actions  may  be  brought 
only  in  the  county  where  the  defendant  resides ;  in  some  where  the 
defendant  resides  or  may  be  found ;  some  actions  can  only  be  main- 
tained in  the  county  in  which  the  cause  of  action  accrued;  others 
where  the  subject  matter  of  the  action  is  situated :  and  in  some  States 
actions  may  be  maintained  in  the  county  where  either  plaintiff  or 
defendant  resides.  The  various  acts  are  referred  to  in  22  Encyclo- 
pedia of  Pleading  and  Practice  790,  et  sequa. 

In  United  States  v.  Crawford  (C.  C),  47  Fed.  561,  565,  Judge 
Parker  said :  "  I  have  no  doubt  that  Congress  may  provide  for  serv- 
ice of  process  out  of  the  district,  as  this  is  a  regulation  of  practice 
and  subject  to  the  legislative  control."    This  was  cited  with  approval 


36 

by  Judge  Morrow  in  United  States  v.  American  Lumber  Go.  (C.  C), 
80  Fed.  309,  and  in  Sidney  L.  Bauman,  etc..  Co.  v.  Ha7%  192  Fed.  498, 
113  C.  C.  A.  104. 

3.  Another  ground  upon  which  this  provision  of  the  act  must  bt 
upheld  is  that  the  courts  of  the  United  States,  inferior  to  the  Supreme 
Court,  are  not  established  by  the  Constitution,  but  owe  their  existence 
and  powers  to  Congress  alone.  That  they  possess  no  powers  not 
granted  by  an  Act  of  Congress  was  determined  as  early  as  1809  in 
BanJ,-  of  United  States  x.  Devaux,  9  IT.  S.  61,  and  again  in  1812  in 
United  States  v.  Hudsoi^  11  U.  S.  32,  and  uniformly  adhered  to  ever 
since.  A  late  case  in  Avhich  this  ruling  is  reaffirmed  is  In  re  Wisner., 
203  U.  S.  449,  455.  That  Congress  may  increase  or  diminish  their 
powers,  or  abolish  them,  is  beyond  question.  It  has  done  so  a  num- 
ber of  times.  The  judiciary  act  of  1875,  18  Statutes  470.  extended  the 
jurisdiction  of  the  circuit  courts  of  the  United  States  materially ;  the 
act  of  1887,  24  Statutes  552,  contracted  it;  the  Judicial  Code,  36 
Statutes  1087,  increased  it  in  some  respects  and  in  others  decreased 
it.  By  that  act,  CongTess  abolished  the  circuit  courts,  and  no  one 
ever  questioned  the  exercise  of  these  powers  by  Congress.  If  Con- 
gress, by  the  act  under  consideration,  has  seen  proper  to  authorize 
the  contraction  of  the  jurisdiction  of  the  district  courts,  by  limiting 
the  courts  in  which  actions  may  be  maintained,  it  has  only  exerted  the 
power  which  has  been  exercised  ever  since  the  enactment  of  the  first 
judiciary  act,  in  1789,  by  the  First  Congress  under  the  Constitution. 
Possessing  this  power.  Congress  may  well  determine  in  what  courts 
actions  may  or  may  not  be  maintained. 

The  Constitution  confers  on  the  Supreme  Court  appellate  jurisdic- 
tion but  "  with  such  exceptions  and  under  such  regulations  as  Con- 
gress shall  make."  In  ex  parte  McCardle,  74  U.  S.  506,  514,  it  was 
held  that  Congress  could  deprive  that  court  of  appellate  jurisdiction, 
and  the  repeal  of  an  act  of  Congi-ess  gi-anting  appellate  jurisdiction 
in  certain  causes  deprived  the  court  of  the  power  to  review  judgments 
in  such  actions.  This  case  has  been  followed  as  a  correct  interpreta- 
tion of  the  powers  of  Congi'ess  in  all  cases  involving  this  question, 
decided  since.    Mmfhy  v.  Otter,  186  U.  S.  95, 109. 

In  Dolley  v.  Penmylrania  R.  R.  (Jo.  (D.  C),  250  Fed.  142,  Judge 
Booth  passed  upon  an  act  similar  to  this  and  sustained  it. 

The  contention  that  the  statute  is  void  because  vesting  administra- 
tive officers  with  legislative  discretion  or  power  is  without  merit. 
Selective  Draft  cases,  245  U.  S.  366,  389. 

It  is  therefore  clear  that  the  act,  if  it  authorizes  these  general  or- 
ders, is  Avithin  the  power  of  Congress  under  the  Constitution. 


37 

DOES  THE   ACT  OF  CONGRESS   GRANT   THIS   POWER  TO  THE   PRESIDENT? 

Counsel  for  plaintiff  contend  that  it  does  not,  relying  upon  that 
part  of  section  10  of  the  act  which  reads:  "Actions  at  law  or  suits 
in  eciuity  may  be  brought  by  or  against  such  carriers  and  judgments 
rendered  as  now  provided  by  law." 

In  the  opinion  of  the  court,  all  this  quotation  means  is  that  any 
person  having  a  cause  of  action  shall  not  by  reason  of  this  act,  or  any 
regulation  made  thereunder,  be  deprived  of  the  right  to  maintain  it 
in  a  proper  court  if,  under  the  State,  Federal,  or  conmion  law,  he  is 
entitled  to  a  legal  remedy.    It  does  not  mean,  as  claimed,  that  having 
a  cause  of  action  against  the  carrier  he  lias  the  right  to  institute  it  in 
any  forum  in  which  he  could  have  brought  it  before  the  passage  of 
this  act.    To  meet  the  exigencies  existing  during  the  war,  Congress 
has.  granted  to  the  President  the  power  to  say  that  one  shall  not  main- 
tain an  action  in  .a  forum  where  the  natural  effect  of  selecting  such 
forum  will  be,  in  the  language  of  General  Order  No.  18,  "■  That  men 
operating  trains  engaged  in  hauling  war  materials,  troops,  munitions, 
or  supplies,  are  required  to  leave  their  trains  and  attend  court  as  wit- 
nesses, and  travel  sometimes  for  hundreds  of  miles  from  their  work, 
necessitating  absence  from  their  trains  for  days  and  sometimes  for 
a  week  or  more:  whicli  practice  is  highly  prejudicial  to  the  just  in- 
terests of  the  Go^•ernment  and  seriously  interferes  with  the  physical 
operation  of  tlie  railroads ;  and  the  practice  of  suing  in  remote  juris- 
dictions is  not  necessary  for  the  protection  of  the  rights  or  the  just 
interests  of  plaintiff's."     That  the  exercise  of  the  right  to  maintain 
actions  in  a  forum  distant  from  the  place  where  the  witnesses  reside, 
will  seriously  interfere  with  the  successful  prosecution  of  the  war 
can  not  be  open  to  doubt.    How  are  the  soldiers  drafted  under  the 
selective-draft  act  to  be  transported  from  the  interior  to  the  seaports, 
if  the  operation  of  trains  is  to  be  interfered  with  in  this  manner? 
How  are  munitions,  clothing,  food,  coal,  and  other  supplies  necessary 
to  carry  on  the  war  to  be  transported  expeditiously  if  the  employees, 
without  whom  trains  can  not  be  operated,  are  to  be  compelled  to 
leave  their  employment  to  attend  as  witnesses  at  places,  hundreds  of 
miles  away  from  where  their  duties  require  them  to  be,  whenever  a 
perspn  has,  or  imagines  he  has,  a  cause  of  action  against  the  carrier, 
and  for  his  convenience,  or  in  some  instances,  perhaps  to  prevent  a 
proper  defense,  institutes  the  action  in  a  court  fai-  distant  from  the 
district  Avhere  the  cause  of  action  arose,  and  in  a  district  other  than 
that  of  the  residence  of  the  plaintiff'  at  the  time  of  the  accrual  of  the 
cause  of  action?     The  fact  that  not  only  the  plaintiff*  but  his  wit- 
nesses can  more  conveniently  attend  the  court,  if  held  at  or  near  his 
home,  or  where  the  cause  of  action  accrued,  may  well  raise  a  doubt 
whether  the  selection  of  a  foreign  forum  is  always  made  in  good 


faith.  The  amendment  of  General  Order  No.  18  by  General  Order 
No.  18-A  was  evidently  intended  to  prevent  a  change  of  residence 
for  the  purpose  of  enabling  a  suit  to  be  brought  at  a  distance  from 
where  the  plaintiff  resided  at  the  time  of  the  accrual  of  the  cause  of 
action,  as  is  so  frequently  done  to  enable  one  to  maintain  an  action 
in  a  national  court,  instead  of  in  the  courts  of  the  State  of  which  the 
plaintiff  and  defendant  were  both  citizens  at  the  time  of  the  accrual 
of  the  cause  of  action. 

But  aside  from  this,  statutes  may  not  be  construed  by  selecting 
some  part  thereof  and  disregarding  other  parts.  For  a  proper  con- 
struction of  a  statute  the  whole  of  it  must  be  read  together,  to  ascer- 
tain the  legislative  intent.  In  the  language  of  Mr.  Chief  Justice 
^Vhite  in  Van  Dyhe  v.  Cordova  Copper  Co.,  234,  U.  S.  188,  191,  "  We 
may  not  in  order  to  give  effect  to  those  words  virtually  destroy  the 
meaning  of  the  entire  context;  that  is,  give  them  a  significance  which 
would  be  clearly  repugnant  to  the  statute,  looked  at  as  a  whole  and 
destructive  of  its  obvious  intent."  The  various  provisions  of  an  act 
should  be  read  so  that  all  may,  if  possible,  have  their  due  and  con- 
joint effect  without  repugnancy  or  inconsistency.  New  Lapp 
Chimney  Co.  v.  Ansonh-  Brass  Co.,  91  U.  S.  656,  662;  Aaron  v. 
United  States,  204  Fed.  943,  123,  C.  C.  A.  265. 

Applying  this  canon  of  construction  to  the  act  and  giving  effect  to 
every  part  of  it,  as  is  our  duty,  it  is  apparent  at  once  how  untenable 
this  contention  is.  That  part  of  section  10  applicable  to  the  matter 
in  controversy  reads:  "  Sec.  10.  That  carriers  while  under  Federal 
control  shall  be  subject  to  all  laws  and  liabilities  as  common  car- 
riers, Avhether  arising  under  State  or  Federal,  laws  or  at  common 
law,  except  in  so  far  as  may  he  inconsistent  ^vith  the  provisions  of 
this  act  or  any  other  act  applicahJe  to  such  Federal  control  or  irith 
any  order  of  the  President.''''  Another  provision  of  the  act  is  section 
9 :  "  And  the  President,  in  addition  to  the  powers  conferred  by  this 
act,  shall  haA'e  and  is  hereby  given  such  other  and  further  powers 
necessary  or  appropriate  to  give  effect  to  the  poAvers  herein  and 
heretofore  conferred." 

There  is  nothing  in  the  general  orders  under  consideration  which 
deprives  the  plaintiff  of  her  right  to  maintain  an  action  against  the 
defendant,  but  for  reasons  of  public  necessity,  in  a  time  of  war,  these 
regulations  were  made,  because  in  the  opinion  of  the  President  and 
Director  General  for  good  and  sufficient  reasons,  they  are  necessary 
to  prevent  serious  interference  with  the  physical  operation  of  rail- 
i-oads  under  the  control  of  the  (lovernment  aud  employed  in  the 
prosecution  of  the  war.  The  act  and  regulations  may  well  be  sus- 
tained upon  the  ground  that  '•'•  Salus  popuU  snprema  lex  est.''''  "The 
welfare  of  the  people  is  the  paramount  law." 

The  demurrer  to  the  plea  is  o\  erruled. 


[Form  A,  October  22,  1918. — For  companies  without  subsidiaries.] 

AGREEMENT  BETWEEN  THE  DIRECTOR  GENERAL  OF  RAILROADS 
AND  THE COMPANY. 

Preamble  axd  Recitals. 

This  Agreement,  made  this day  of ,  1918,  be- 
tween Wfllicmi  G.  McAdoo^  Director  General  of  Railroads,  herein- 
after called  the  Director  General,  acting  on  behalf  of  the  United 
States  and  the  President,  under  the  powers  conferred  by  the  procla- 

niutions  of  the  President  hereinafter  referred  to,  and  the 

Company, 

a  corporation  duly  organized  under  the  laws  of  the  State  (s)  of 
,  hereinafter  called  the  Cqmpan}'^: 

Witnesseth  that — 

{a)  "Whereas  hy  a  proclamation  dated  December  26,  1917,  the 
President,  acting  under  the  powers  conferred  on  him  by  the  Consti- 
tution and  laws  of  the  United  States,  by  the  joint  resolutions  of  the 
Senate  and  House  of  Representatives  bearing  date  April  6  and  De- 
cember 7,  1917,  respectively,  and  particularly  under  the  poM^ers  con- 
ferred by  section  1  of  the  act  of  Congrass  approved  August  29,  1916, 
entitled  "  An  act  making  appropriations  for  the  support  of  the  Army 
for  the  fiscal  year  ending  June  30,  1917,  and  for  other  purposes, " 
took  possession  and  assumed  control  at  12  o'clock  noon  on  December 
28,  1917,  of  certain  railroads  and  systems  of  transportation,  including 
the  railroad  and  transportation  system  of  the  Company  and  the  ap- 
purtenances thereof,  and  directed  that  the  possession,  control,  oper- 
ation, and  utilization  of  the  transportation  systems  thus  taken  should 
be  exercised  by  and  through  William  G.  McAdoo,  appointed  Direc- 
tor General  of  Railroads ;  and 

{h)  "Whereas  the  Congress  of  the  United  States,  by  an  act  ap- 
proved March  21,  1918,  hereinafter  called  the  Federal  control  act, 
has  authorized  the  President  to  enter  into  agreements  with  the  com- 
panies owning  the  railroads  and  systems  thus  taken  over  for  the 
maintenance  and  upkeep  of  the  same  during  the  period  of  Federal 
control,  for  the  determination  of  the  rights  and  obligations  of  the 
parties  to  the  agreement  arising  from  or  out  of  Federal  control,  in- 
cluding the  compensation  to  be  received  or  guaranteed,  and  for  other 
purposes,  as  in  said  act  more  fully  set  out,  and  authorize  the  Pres- 

(39) 


40 

ident  to  exercise  any  of  the  powers  by  said  act  or  theretofore  granted 
him  with  relation  to  Federal  control  through  snc-h  agencies  as  he 
might  determine;  and 

(c)  Whereas  by  a  proclamation  dated  March  29,  1918,  the  Presi- 
dent, acting  under  the  Federal  control  act  and  all  other  powers  him 
thereto  enabling,  authorized  the  Director  General,  either  personally 
or  through  sncli  divisions,  agencies,  or  persons  as  he  may  appoint,  and 
in  his  own  name  or  in  the  name  of  such  divisions,  agencies,  or  persons, 
or  in  the  name  of  the  President,  to  agree  witli  the  carriers,  or  any  of 
them,  or  with  any  other  person  in  interest,  upon  the  amount  of  com- 
pensation to  be  paid  pursuant  to  law,  and  to  sign,  seal,  and  deliver  in 
his  own  name  or  in  the  name  of  the  President  or  in  the  name  of  the 
United  States  such  agreements  as  may  be  necessary  and  expedient 
with  the  several  carriers  or  other  persons  in  interest  respecting  com., 
pensation.  or  any  other  matter  concerning  which  it  may  be  necassary 
or  expedient  to  deal,  and  to  make  any  and  all  contracts,  agreements, 
or  obligations  necessary  or  expedient  and  to  issue  any  and  all  orders 
which  may  in  any  way  be  found  necessary  and  expedient  in  connection 
with  the  Federal  control  of  systems  of  transportation,  railroads,  and 
inland  waterways  as  fully  in  all  respects  as  the  President  is  author- 
ized to  do,  and  generally  to  do  and  perform  all  and  singular  the  acts 
and  things  and  to  exercise  all  and  singular  the  powers  and  duties 
which  in  and  by  the  said  act,  or  any  other  act  in  relation  to  the  sub- 
ject thereof,  the  President  is  authorized  to  do  and  perform ;  and 

(d)  Whereas  the  Interstate  Commerce  Commission  has  certified 
to  the  President  that  the  amount  of  the  average  annual  railway  oper- 
ating income  of  the  Company,  computed  in  the  manner  provided  in 

section  1  of  the  Federal  control  act,  is 

dollars  and cents  ($ ).  subject  to  such  changes 

and  corrections  as  the  Commission  may  hereafter  determine  and 
certify  to  be  requisite  in  order  that  the  accounts  and  reports  of  the 
Company  used  by  the  Commission  as  the  basis  of  computing  said 
average  annual  railway  operating  income  may  be  brought  into  con- 
formity with  the  accounting  rules  or  regulations  of  the  Commission 
in  force  at  the  time  of  such  accounting,  or  in  order  to  correct  compu- 
tations based  on  such  accounts  or  reports. 

Now,  Therefore,  the  parties  hereto,  each  in  consideration  of  the 
agreements  of  the  other  herein  contained,  do  hereby  covenant  and 
agree  to  and  with  each  other  as  follows: 

Section  1. — Privity.  Ai/natATioNs.  Dekinitioxs,  Etc. 

Sec.  1.  (a)  This  agreement  shall  l)e  Ijinding  upon  the  United 
States,  the  Director  General  and  his  successors,  and  upon  the  Com- 
pany, its  successors,  and  assigns. 


41 

This  agreement  shall  not  be  construed  as  creating  any  right,  claim, 
privilege,  or  benefit  against  either  party  hereto  in  favor  of  any  State 
or  any  subdivision  thereof,  or  of  any  individual  or  corporation  other 
than  the  parties  hereto. 

(b)  The  provisions  of  this  agreement  may  l)e  akered,  amended,  or 
added  to  by  and  only  by  mutual  consent  signified  by  instruments  in 
writing  signed  by  the  Director  General  and  by  some  officer  of  the 
Company  thereto  duly  authorized  by  the  Board  of  Directors  of  the 
Company. 

(c)  Wherever  in  this  agreement  the  word  "  Commissioner''  is  used 
it  shall  be  understood  as  meaning  the  Interstate  Commerce  Com- 
mission, acting  by  divisions  or  otherwise  as  authorized  by  law;  but 
either  party  shall  have  the  right  to  have  the  decision  of  any  division 
reviewed  by  the  Commission  sitting  as  a  whole. 

(d)  Wherever  in  this  agreement  the  words  "Federal  control"  are 
used  to  indicate  a  period  of  time,  they  shall  be  understood  as  mean- 
ing the  period  from  12  o'clock  midnight  of  December  31,  1917,  to  and 
including  the  day  and  hour  on  which  said  control  shall  cease. 

(e)  Wherever  in  this  agreement  the  words  "  test  period  "  are  used, 
they  shall  be  understood  as  meaning  the  period  betw^een  July  1, 
1914,  and  June  30,  1917,  both  inclusive. 

(/)  Wherever  in  this  agreement  the  words  "  standard  return  "  are 
used,  they  shall  be  understood  as  meaning  the  average  annual  rail- 
way operating  income  of  the  Company,  computed  in  the  manner  pro- 
vided in  section  1  of  the  Federal  control  act,  and  ascertained  and 
certified  by  the  Commission, 

(g)  Wherever  in  this  agreement  the  words  "Director  General" 
are  used,  they  shall  be  understood  as  designating  William  G. 
McAdoo,  or  such  other  person  as  the  President  may  from  time  to 
time  appoint  to  exercise  the  powers  conferred  on  him  by  law  with 
relation  to  Federal  control,  or  such  agents  or  agencies  as  the  Director 
General  may  from  time  to  time  appoint. for  the  purpose;  and  wher- 
ever by  this  agreement  any  notice  is  to  be  given  by  the  Director 
General,  the  same  may  be  given  in  his  name  by  any  subordinate  there- 
to duly  authorized. 

(h)  Wherever  the  property  of  the  company  is  referred  to  in  this 
agreement  it  shall  be  understood  as  including  all  the  property  de- 
scribed in  paragraph  (a)  of  section  2  hereof,  Avhether  owned  by  or 
leased  to  the  Company,  and,  where  the  context  permits,  all  additions 
or  betterments  thereto  or  extensions  thereof  made  during  Federal 
control;  and  as  to  all  such  leased  property  the  Company  shall  have 
the  benefit  of  and  be  subject  to  all  the  obligations  and  provisions  of 
this  agreement  and  shall  be  subject  to  all  duties  imposed  by  law  in 
respect  of  such  leased  property. 


42 

(i)  The  descriptive  words  at  the  heads  of  tlie  several  sections  of 
this  agreement  and  the  table  of  contents  are  inserted  for  convenience 
merely,  and  are  not  to  be  used  in  the  construction  of  the  agreement. 

Section   2. — Property  Taken   Over. 

Sec.  2.  The  Companj^'s  railroad  and  system  of  transportation  of 
which  the  President  has  taken  over  possession,  use,  control,  and 
operation  shall  be  considered  as  including: 

(a)  The  following  roads  and  properties: 


together  with  all  branches  and  tracks,  trackage,  bridge,  and  terminal 
rights,  and  lines  of  railroad  owned  by  or  leased  to  and  operated  b,y 
the  Company  as  a  part  of  its  system  of  transportation,  and  all  other 
property  of  the  Company  with  the  appurtenances  thereof,  whether 
included  in  the  foregoing  list  or  not,  the  revenues  of  which  were  used, 
or  which,  if  the  property  had  been  then  owned  by  or  leased  to  it 
and  had  then  been  revenue  bearing,  would  have  been  used,  in  com- 
puting the  Company's  standard  return. 

The  Company  reserves  to  itself  the  benefit  of  all  leases  (and  of  all 
rents  and  revenues  accruing  therefrom),  of  parts  of  its  right  of  way, 
station  grounds,  and  other  property,  the  revenues  from  which  under 
the  accounting  rules  of  the  Commission  in  force  during  the  test 
period  were  properly  creditable  to  "  miscellaneous  rent  income  "  or 
"  miscellaneous  income."  The  Company  grants  to  the  Director  Gen- 
eral all  its  rights  to  terminate  leases  of  any  part  of  its  right  of  way. 
yards,  or  station  grounds,  and  to  occupy  and  use  the  premises  of  any 
such  lessee  when,  in  his  judgment,  the  same  is  required  for  operating 
purposes.  The  Company  shall  have  for  its  own  benefit  the  right  to 
lease  for  industrial  sites  or  other  purposes  such  portion  of  its  right 
of  way,  yards,  or  station  grounds,  or  structures  thereon,  as  are  not 
required  by  the  Director  General  for  operating  purposes,  and  to  re- 
ceive and  enjoy  the  rentals  therefrom,  subject  to  the  right  of  the  Di- 
rector General  to  cancel  any  such  lease  and  to  occupy  the  premises 
or  structures  whenever,  in  his  judgment,  the  same  are  necessary  for 
operating  purposes.  All  expenses  connected  with  any  such  property 
heretofore  or  hereafter  leased  or  otherwise  occuj^iod,  as  in  this  para- 
graph provided,  including  taxes  thereon  which  during  the  test  period 
were  not  charged  to  railway  tax  accruals,  shall  be  paid  by  the  Com- 
pany while  receiving  the  revenues  therefrom. 

(b)   All  materials  and   supplies  on  hand  at   midnight  December 
31.  1917 


43 


(c)  All  balances  in  the  account  or  accounts  representing  the  total 
of  "  Net  balance  receivable  from  agents  and  conductors  "  as  of  mid- 
night December  31,  1917; 


Section  3. — Acceptance. 

Sec.  3.  {a)  The  Compan}-  accepts  all  the  terms  and  conditions 
of  the  Federal  control  act  and  any  regulation  or  order  made  by  or 
through  the  President  under  authority  of  said  act  or  of  that  portion 
of  the  act  approved  August  29,  1916,  referred  to  in  paragraph  (a) 
of  the  preamble  to  this  agreement  which  authorizes  the  President  in 
time  of  war  to  take  possession,  assume  control,  and  utilize  S3'stems 
of  transportation;  and  the  Company  further  and  expressly  accepts 
the  covenants  and  obligations  of  the  Director  General  in  this  agree- 
ment set  out  and  the  rights  arising  thereunder  in  full  adjustment, 
settlement,  satisfaction,  and  discharge  of  any  and  all  claims  and 
rights,  at  law  or  in  equity,  which  it  now  has  or  hereafter  can  have, 
otherwise  than  under  this  agreement,  against  the  United  States,  the 
President,  the  Director  General,  or  anj'^  agent  or  agency  thereof,  for 
compensation  under  the  Constitution  and  laws  of  the  United  States 
for  the  taking  possession  of  its  property,  and  for  the  use,  control,  and 
operation  thereof  during  Federal  control,  and  for  any  and  all  loss 
and  damage  to  its  business  or  traffic  by  reason  of  the  diversion  thereof 
or  otherwise  which  has  been  or  may  be  caused  b}^  said  taking  or  by 
said  possession,  use,  control,  and  operation. 

No  claim  is  made  by  the  Company  for  compensation  for  the  period 
betAveen  noon  of  December  28  and  midnight  of  December  31,  1917; 
and  the  revenues  of  said  period  shall  belong  to  the  Company,  and  the 
expenses  thereof  shall  be  paid  by  the  Company,  allocated  in  both 
cases  as  provided  in  paragraph  (h)  of  section  4  hereof. 

(h)  The  Company,  on  its  own  initiatiA^e  or  upon  the  request  of  the 
Director  General,  shall  take  all  appropriate  and  necessary  corporate 
action  to  carry  out  the  obligations  assumed  by  it  in  this  agreement 
or  laW'fully  imposed  upon  it  b}^  or  pursuant  to  the  proclamation  of 
December  26,  1917,  or  by  the  Federal  control  act. 

(c)  The  Federal  control  act  being  in  section  16  thereof  expressly 
declared  to  be  emergency  legislation  enacted  to  meet  conditions  grow- 
ing out  of  war,  nothing  in  this  agi^eement  shall  be  construed  as  ex- 
pressing or  prejudicing  the  future  policy  of  the  Federal  Government 
concerning  the  ownership,  control,  or  regulation  of  the  Company, 
or  the  method  or  basis  of  the  capitalization  thereof,  and  the  recitals 
or  provisions  of  this  agreement  shall  not  be  used,  as  evidence  or  other- 
wise, by  or  against  either  party  hereto  in  any  pending  or  future  pro- 
ceeding which  involves  the  acquisition  or  valuation  of  the  Company's 


44 

property  or  any  part  thereof ;  but  nothing  in  this  paragraph  shall  be 
taken  or  construed  as  affecting  the  settlement  and  discharge  contained 
in  paragraph  {a)  of  this  section,  nor  as  limiting  or  qualifying  any 
of  the  provisions  of  said  paragraph  for  the  purposes  thereof,  nor  as 
limiting  the  use  of  this  agreement  as  evidence  in  any  proceeding  un- 
der tliis  agreement  or  under  the  Federal  control  act. 

Section  4. — Operation  and  Accounting  During  Federal.  Control. 

Sec.  4.  (a)  All  amounts  received  by  the  Director  General  under 
paragraph  (c)  of  section  2  hereof  and  all  other  amounts  whether  re- 
ceived from  the  Company  in  cash  or  collected  or  realized  upon  by 
him  from  current  operating  assets  belonging  to  the  Company  or 
arising  from  railway  operations  prior  to  midnight  of  December  31, 
1917,  shall  be  credited  by  him  to  the  Company;  and  the  Director 
General  shall,  to  the  extent  of  the  cash  so  received  or  realized,  pay 
and  charge  to  the  Company  all  expenses  arising  out  of  railway  opera- 
tions prior  to  January  1,  1918,  including  reparation  claims,  and, 
unless  objected  to  by  the  Company,  may  pay  and  charge  to  the  Com- 
pany any  of  such  expenses,  including  reparation  claims,  in  excess  of 
the  cash  so  received  or  realized.  Balances  of  the  above  accounts 
shall  be  struck  quarterly  on  the  last  days  of  March,  June,  Septem- 
ber, and  December  of  each  year,  and  the  cash  balance  found  on  such 
adjustments  to  be  due  either  party  shall  be  then  payable  and,  if  not 
paid,  shall  bear  interest  at  the  rate  of  6  per  cent  per  annum,  unless 
the  parties  shall  agi'ee  upon  a  different  rate;  except  that  the  rate  of 
interest  on  any  portion  of  a  balance  found  due  to  the  Company  which 
is  derived  from  cash  in  bank  to  the  credit  of  such  Company  on  in- 
terest, shall  be  adjusted  in  each  case  independently  of  this  contract 
as  the  parties  may  agree. 

(h)  Eailway  operating  expenses,  reparation  and  other  claims,  hire 
of  equipment  and  joint  facility  rents  shall  be  allocated  with  reference 
to  the  time  when  incurred  as  between  the  period  prior  and  subsequent 
to  midnight  of  December  31,  1917,  and  as  between  the  period  of  Fed- 
eral control  and  the  period  subsequent  thereto.  Railway  operating 
revenues  shall  be  allocated  a,s  between  the  period  prior  and  subse- 
quent to  midnight  of  December  31,  1917,  in  accordance  with  the 
established  accrual  practices  of  the  Company;  except  that  where 
prior  to  midnight  of  December  31,  1917,  the  Company's  part  of  a 
service  on  through  business  had  been  completed  or  carload  lots  on 
its  own  line  had  readied  destination,  the  revenue  of  the  Company 
for  such  service  shall  be  allocated  to  it;  but  as  to  classes  of  traffic 
where  in  the  opinion  of  the  Director  General  such  allocation  will 
involve  undue  dehiy  or  undue  absorption  of  accounting  labor,  such 
revenues  shall  be  allocated  in  accordance  with  the  established  accrual 


45 

})nictices  of  the  ComiDany.     Like  methods  of  accruing  and  allocating 
such  revenues  shall  be  made  at  the  end  of  Federal  control. 

(<?)  All  expenditures  made  by  the  Director  General  during  Federal 
control  for  additions  and  betterments,  exclusive  of  equipment,  or  for 
extensions  begun  prior  to  January  1,  1918,  shall  be  charged  to  the 
Company,  and  if  the  completion  of  any  such  addition,  betterment,  or 
extension  is  approved  or  ordered  b}'^  the  Director  General,  the  Com- 
pany shall  be  entitled  under  the  provisions  of  paragraph  (//)  of  sec- 
tion 7  hereof  to  interest  on  the  cost  thereof  from  the  completion  of 
the  work:  but  no  interest  (except  to  the  extent  that  the  same  may  be 
allowed  and  included  in  the  compensation  provided  for  in  paragraph 
(a)  of  section  7  hereof)  shall  be  due  the  Company  upon  any  such 
expenditures  for  work  done  prior  to  Januar^^  1,  1918.  Payments  for 
all  equipment  ordered  or  under  construction  by  the  Compan}'^  prior  to 
January  1, 1918,  but  delivered  on  or  after  that  date,  shall  also  be  con- 
sidered as  expenditures  made  by  order  or  approval  of  the  Director 
General  under  paragraph  (d)  of  section  7  hereof.  Interest  during 
construction  payable  under  this  paragraph,  and  also  interest  during 
construction  on  the  cost  of  any  additions,  betterments,  and  road  ex- 
tensions made  by  the  Company  or  at  its  expense  to  the  Company's 
property  during  Federal  control,  shall  be  included  in  the  cost  of  the 
work. 

(d)  Cash  receipts  or  disbursements  and  other  items  arising  out  of 
transactions  which  do  not  enter  into  or  form  a  part  of  those  used 
in  determining  the  Company's  standard  return  shall  not  be  received 
or  paid  by  the  Director  General  unless  such  transactions  are  nego- 
tiated or  conducted  by  his  order  for  account  of  the  Company  and 
with  its  consent.  When  moneys  are  so  received  or  paid  by  the  Direc- 
tor General  in  connection  with  such  corporate  transactions  they  shall 
be  credited  or  charged  to  the  Company.  There  shall  be  an  accoimting 
of  the  amounts  due  by  one  party  or  the  other  under  this  paragi-aph 
at  the  end  of  each  quarter  year  of  Federal  control,  and  the  amount 
so  found  due  shall  be  then  payable  and  if  not  paid  shall  bear  interest 
as  provided  in  paragraph  (a)  of  this  section. 

(e)  All  sums  paid  by  the  Director  General  to  maintain  pension 
funds  or  pension  obligations  or  practices,  and  all  contributions  to 
Young  Men's  Christian  Associations  of  employees,  employees'  sav- 
ings funds,  relief  funds  or  associations,  reading  rooms,  or  health,  ac- 
cident, or  death  benefits  for  employees,  shall  be  treated  as  a  part  of 
railway  operating  expenses  during  Federal  control. 

(/)  All  salaries  and  expenditures  incurred  by  the  Company  during 
Federal  control  for  purposes  which  relate  to  the  existence  and  main- 
tenance of  the  corporation,  or  to  the  properties  of  the  Company  not 
taken  over  by  the  President,  or  to  negotiations,  contracts,  valuations, 
or  any  business  controversy  with  the  Government  or  any  branch 


46 

thereof,  and  which  are  not  specially  authorized  by  the  Director  Gen- 
eral, shall  be  borne  by  the  Company;  except  that  the  expenses  of 
valuation  now  being  made  by  the  Commission  to  the  extent  that  they 
are,  in  the  opinion  of  the  Director  General,  necessary  to  comply  with 
the  valuation  orders  and  other  requirements  of  the  Commission  and 
to  the  cooperation  of  the  Company  in  the  making  of  such  valuation, 
shall  be  paid  by  the  Director  General  as  a  part  of  railway  operating 
expenses.  If  the  Company  is  dissatisfied  with  the  ruling  of  the 
Director  General  it  may  appeal  to  the  Commission,  whose  decision 
shall  be  final. 

{g)  The  Director  General  shall  furnish  for  additions,  betterments 
and  road  extensions  to  the  Company's  property  approved  or  ordered 
by  him  any  of  the  materials  and  supplies  taken  over  under  paragraph 
(&)  of  section  2  hereof,  or  purchased  by  him  and  held  for  use  in  con- 
nection with  the  Company's  property,  in  so  far  as,  in  his  judgment, 
he  can  do  so  with  due  regard  to  his  own  requirements.  Materials 
and  supplies  so  furnished  shall  be  charged  to  the  Company  at  cost. 

(7t)  The  Director  General  shall  at  his  option  be  substituted  for 
the  period  of  Federal  control  in  the  place  of  the  Company  in  respect 
of  the  benefits  and  obligations  of  contracts  relating  to  operation  in 
force  January  1,  1918  (including  contracts  made  by  subsidiaries  for 
the  use  and  benefit  of  the  Company  and  the  right  to  abrogate  or 
change  and  make  new  contracts  with  express  companies  for  the 
period  of  Federal  control),  except  as  to  contracts  between  the  Com- 
pany and  subsidiary  companies  which  shall  be  considered  and  treated 
as  arrangements  or  practices;  and  the  Director  General  shall  in  like 
manner  at  his  option  be  substituted  for  such  period  in  respect  of  the 
benefits  and  obligations  of  arrangements  and  practices  in  force  during 
the  test  period  in  regard  to  fuel,  materials,  and  supplies  for  the  op- 
eration of  the  property  described  in  paragraph  («)  of  section  -1 
hereof  and  of  any  additions,  betterments,  and  road  extensions  thereto, 
obtained  from  any  mine,  oil  field,  or  other  source  of  supply  owned 
or  controlled  by  the  Company,  it  being  understood  that  under  such 
arrangements  or  practices,  if  availed  of  by  the  Director  General,  he 
shall,  to  the  extent  necessary  to  offset  any  increase  in  the  standard 
return  growing  out  of  the  furnishing  by  the  Company  or  of  its  sub- 
sidiaries, during  the  test  period,  of  fuel,  materials,  and  supplies  under 
an  arrangement  or  practice  at  less  than  the  then  cost  or  the  then 
market  value  thereof  for  railroad  purposes,  be  charged  for  such  fuel, 
materials,  and  supplies  a  price  expressed  in  dollars  or  cents  per 
unit  below  or  above  the  then  cost  or  the  then  market  value  thereof 
for  railroad  purposes  (as  the  practice  of  the  Company  may  have 
be^n)  in  the  same  amount  that  the  prices  charged  the  Company 
dining  the  test  period  were  below  or  above  the  then  cost  or  the  then 
market  value  thereof  for  railroad  purposes;  and  at  the  request  of 


47 

the  Director  General  or  the  Company  the  prices  for  fnel  or  materials 
supplied  between  December  31,  1917,  and  the  execution  of  this  con- 
tract shall  be  adjusted  on  the  foregoing  basis:  Provided^  howeoev^ 
That  a  source  of  supply  which  the  Company  had  acquired  to  safe- 
guard its  own  operations  shall  not  be  depleted  or  reduced  for  use  on 
other  transportation  systems,  except  in  cases  of  emergency  to  be 
determined  by  the  Director  General,  in  which  event  the  quantity 
so  used  on  other  transportation  systems  shall  be  accounted  for  to  the 
Company'  at  the  fair  value  thereof:  And  promd^ed  further^  That  ma- 
terials and  supplies  secured  under  contracts  which  the  Compan}^  had 
made  for  its  own  operations  shall,  so  far  as  practicable,  be  used  on 
the  Company's  property,  and  that,  if  used  on  any  other  transporta- 
tion sj'stem,  materials  and  supplies  of  like  character  shall  be  fur- 
nished by  the  Director  General  for  use  in  making  such  additions, 
betterments,  and  road  extensions  as  shall  be  chargeable  to  the  Con- 
pany,  and  shall  be  charged  at  cost  under  such  contracts. 

{I)  The  Director  General  shall  pay,  or  save  the  Company  harmless 
from,  all  expenses  incident  to  or  growing  out  of  the  possession,  op- 
ei'ation,  and  use  of  the  property  taken  over  during  Federal  control, 
except  the  expenses  which  under  this  agreement  are  to  be  borne  by 
the  Company.  He  shall  also  pay  or  save  the  Company  harmless 
from  all  rents  called  in  the  monthly  reports  to  the  Commission 
equipment  rents  or  joint-facility  rents,  and  all  judgments  or  decrees 
that  may  be  recovered  or  issued  against,  and  all  fines  and  penalties 
that  may  be  imposed  upon,  the  Company  by  reason  of  any  cause  of 
action  arising  out  of  Federal  control,  or  of  anything  done  or  omitted 
in  the  possession,  operation,  use,  or  control  of  the  Company's  prop- 
erty during  Federal  control,  except  judgments  or  decrees  founded  on 
obligations  of  the  Compan}'  to  the  Director  General  or  the  United 
States. 

{])  Except  as  otherwise  provided  in  this  agreement,  the  Director 
General  shall  save  the  company  harmless  from  any  and  all  liability, 
loss,  or  expense  resulting  from  or  incident  to  any  claim  made  against 
the  Company  growing  out  of  anything  done  or  omitted  during  Fed- 
eral control  in  connection  with,  or  incident  to,  operation  or  existing 
contracts  relating  to  operation,  and  shall  do  and  perform,  so  far  as 
is  requisite  under  Federal  control  for  the  protection  of  the  Company, 
all  and  singular  the  things,  of  which  he  may  have  notice,  necessary 
and  appropriate  to  prevent,  because  of  Federal  control  or  of  any- 
thing done  or  omitted  thereunder,  the  forfeiture  or  loss  by  the  Com- 
pany of  any  of  its  property  rights,  ordinance  rights,  or  franchises, 
or  of  its  trackage,  lease,  terminal,  or  other  contracts  involving  a 
facility  of  operation;  but  nothing  herein  contained  shall  be  con- 
strued to  require  the  Director  General  to  make  any  capital  expend- 
iture  necessary   to   preserve   a   franchise   or   ordinance    right   not 


48 

heretofore  availed  of  by  the  Company.  The  Director  General  shall 
also  save  the  Company  harmless  from  any  and  all  claims  for  breach 
of  covenant  heretofore  entered  into  by  the  Company  or  by  any 
predecessor  in  title  or  interest  in  any  mortgage  or  other  instrument 
in  respect  to  insurance  against  losses  by  fire. 

Nothing  in  this  or  in  the  preceding  paragraph  shall  be  construed 
to  be  an  assumption  by  the  Director  General  of,  or  to  make  him 
liable  on,  any  obligation  of  the  Company  to  pay  a  debt  secured  by  a 
mortgage  or  any  rent  under  a  lease,  except  rents  which  during  the 
test  period  were  called  in  the  monthly  reports  to  the  Commission 
equipment  rents  and  joint  facility  rents  and  rents  which  under  the 
accounting  rules  of  the  Commission  in  force  during  tlie  test  period 
were  classified  as  operating  expenses. 

The  Company  shall,  during  Federal  control,  pay  the  rents  of  any 
property,  held  by  it  under  lease  or  contract,  described  in  paragraph 
{a)  of  seption  2  hereof,  except  the  rents  which  during  the  test  period 
were,  under  the  rules  of  the  Commission,  classified  as  equipment 
rents  or  joint  facility  rents,  and  rents  which  were  classified  as  oper- 
ating expenses;  which  excepted  rents  shall  be  paid  by  the  Director 
(ieneral.  If  the  lease  of,  or  right  to  use,  any  property  described  in 
])aragi'aph  («;)  of  said  section  2  expires  during  Federal  control,  the 
Company  shall,  if  possible,  and  if  requested  by  the  Director  General, 
renew  the  same:  the  rental,  however,  of  property  in  the  excepted 
classes  above  mentioned  shall  be  paid  by  the  Director  General.  The 
Company  shall  pay  the  same  amount  of  rent  as  was  payable  at  the 
beginning  of  Federal  control  for  other  property,  the  lease  of  or 
right  to  use  which  is  renewed  at  the  request  of  the  Director  General, 
l)ut  any  increase  in  the  rental  of  such  other  property  shall  be  paid 
by  the  Director  General. 

(k)  In  carrying  out  the  provisions  of  paragraphs  («),  (h),  (c), 
and  (d)  of  this  section  and  the  provisions  of  section  6  hereof  the 
Director  Geneial  shall  not  settle  any  claim  by  or  against  the  Com- 
l)any  against  the  objection  in  writing  of  the  president  or  of  any  other 
duly  authorized  officer  of  the  Company.  The  conduct  of  all  litiga- 
tion before  any  court  or  commission  arising  out  of  such  disputed 
claims,  or  out  of  operation  prior  to  Federal  control,  shall  be  in  charge 
of  the  Director  General's  legal  force  and  the  expense  thereof  shall  be 
paid  by  the  Director  General ;  but  the  Company  may,  at  its  own  ex- 
pense, employ  special  counsel  in  connection  Avith  any  such  litigation. 

(l)  Nothing  in  this  agi-eement  shall  be  construed  as  inconsistent 
with  the  provision  in  section  10  of  the  Federal  control  act  that  no 
}nocess,  mesne  or  final,  shall  be  levied  against  any  property  under 
Federal  control,  nor  as  a  waiver  by  the  United  States  of  any  claim 
that  might  otherwise  be  )nade  by  it  that  the  rights  of  any  State  or 
subdivision  thereof  or  of  any  individual  or  corporation  have  been 


49 

abrogated  or  suspended  by  the  taking  over  of  the  Company's  prop- 
erty or  by  Federal  control. 

(m)  The  Company  shall  have  the  right  at  all  reasonable  times  to 
inspect  the  books  and  accounts  kept  by  the  Director  General  relating 
to  the  property  of  the  Company,  or  to  the  operation  thereof,  and  the 
Director  General  shall  during  Federal  control  furnish  the  Company 
\\ith  a  copy  of  the  operating  reports  relating  to  its  property,  and  as 
soon  as  practicable  after  the  end  of  each  fiscal  year  shall  furnish  to 
the  Company  a  complete  list  of  its  equipment  as  of  the  end  of  such 
fiscal  year. 

Sectiox  5. — Upkeep. 

Sec.  5.  (a)  During  the  period  of  Federal  control  the  Director 
General  shall,  annually,  as  nearly  as  practicable,  expend  and  charge 
to  railway  operating  expenses,  either  in  payments  for  labor  and  ma- 
terials or  by  payments  into  funds,  such  sums  for  the  maintenance, 
repair,  renewal,  retirement,  and  depreciation  of  the  property  de- 
scribed in  paragi-aph  {a)  of  section  2  hereof  as  may  be  requisite  in 
order  that  such  property  may  be  returned  to  the  Company  at  the  end 
of  Federal  control  in  substantially  as  good  repair  and  in  substantially 
as  complete  equipment  as  it  was  on  January  1,  1918:  Provided, 
however,  That  the  annual  expenditure  and  charges  for  such  pur- 
poses during  the  period  of  Federal  control  on  such  property  and  the 
fair  distribution  thereof  over  the  same,  or  the  payment  into  funds  of 
an  amount  equal  in  the  aggregate  (subject  to  the  adjustments  pro- 
vided in  paragi-aph  (r)  and  to  the  provisions  of  paragraph  (e)  of 
this  section)  to  the  average  annual  expenditure  and  charges  for  such 
purposes  included  under  the  accounting  rules  of  the  Commission  in 
railway  operating  expenses  during  the  test  period,  less  the  cost  of 
fire  insurance  included  therein,  shall  be  taken  as  a  full  compliance 
with  the  foregoing  covenant. 

(h)  The  Director  General  may  expend  such  sums,  if  any,  in  addi- 
tion to  those  expended  and  charged  under  paragi-aph  (a)  of  this 
section  (subject  to  the  adjustments  provided  in  paragraph  (c)  of 
this  section)  as  may  be  requisite  for  the  safe  operation  of  the  prop- 
erty described  in  paragraph  (a)  of  section  2  hereof,  assuming  a  use 
similar  to  the  use  during  the  test  period  and  not  substantially  en- 
hancing the  cost  of  maintenance  over  the  normal  standard  of  main- 
tenance of  railroads  of  like  character  and  business  during  said  period ; 
and  the  amount,  if  any,  of  such  excess  expenditures  during  Federal 
control  shall  be  made  good  by  the  Company  as  provided  in  para- 
graph (b)  of  section  7  hereof. 

(c)  In  comparing  the  amounts  expended  and  charged  under  the 
provisions  of  paragraphs    (a)    and    (h)    of  this  section   with  the 
105889'— 19 4 


50 

amounts  expended  and  charged  during  the  test  period,  due  allow- 
ance shall  be  made  for  any  difference  that  may  exist  between  the  cost 
of  labor  and  materials  and  between  the  amount  of  property  taken 
over  and  the  average  for  the  test  period,  and,  as  to  paragraph  (a). 
for  any  difference  in  use  between  that  of  the  test  period  and  during 
Federal  control  which  in  the  opinion  of  the  Commission  is  substan- 
tial enough  to  be  considered,  so  that  the  result  shall  be,  as  nearly  as 
practicable,  the  same  relative  amount,  character,  and  durability  of 
phj'sical  reparation. 

(d)  At  the  request  of  either  party  there  shall  be  an  accounting 
of  the  amounts  due  by  one  party  or  the  other  under  paragraphs  (a) 
and  (&)  of  this  section  at  the  end  of  each  year  of  Federal  control  and 
at  the  end  of  Federal  control. 

(e)  If  during  Federal  control  any  of  the  property  described  in 
paragraph  (a)  of  section  2  hereof  or  any  replacement  thereof  or  ad- 
dition thereto  or  betterment  or  extension  thereof  is  destroyed  or 
damaged  otherwise  than  by  fire  or  public  enemies,  and  is  not  restored 
or  replaced  by  the  Director  General,  he  shall  reimburse  the  Company 
the  value  of  the  property  destroyed  or  the  amount  of  the  damage  at 
the  time  of  the  loss,  and  the  cost  of  restoration  or  replacement,  or  said 
value  or  damage,  as  the  case  may  be,  shall  be  charged  to  annual  rail- 
way operating  expenses;  it  being  understood  that  extraordinary 
losses  caused  by  floods,  explosions,  train  wrecks,  or  accident  are 
included  in  the  matters  covered  by  this  paragraph,  while  ordinary 
losses  due  to  such  causes  are  included  in  the  matters  covered 
by  paragraph  (a)  of  this  section:  Provided,  however.  That 
if  the  Commission,  on  application  of  either  party  and  after 
giving  due  consideration  to  the  practice  of  the  Company  during 
the  test  period  in  respect  to  such  matters  and  to  any  other  pertinent 
facts  and  circumstances,  determines  that  it  is  just  and  reasonable 
that  the  said  cost  or  value  shall  be  apportioned  or  extended  over  a 
period  of  more  than  one  year,  this  shall  be  done,  and  so  much  of 
said  cost  or  value  as  may  be  apportioned  by  the  Commission  over 
the  period  subsequent  to  Federal  control,  shall  be  charged  to  the 
Company  in  the  final  accounting  at  the  end  of  Federal  control  and 
shall  be  paid  by  it. 

If,  during  Federal  control,  any  of  the  property  described  in 
paragraph  (a)  of  section  2  hereof  or  any  roplacoinent  thereof  or 
addition  thereto  or  betterment  or  extension  thereof  is  destroyed  or 
damaged  by  fire,  and  is  not  restored  or  replaced  by  the  Director 
(iencral,  he  shall  reimburse  the  Company  the  value  of  the  property 
destroyed  or  the  amount  of  the  damage  at  the  time  of  the  fire ;  and 
the  cost  of  restoration  or  replacement  or  said  value  or  damage,  as 
the  case  may  be,  shall  l)e  charged  to  annual  railway  operating  ex- 
l^enses,  but  tiie  same  shall  not  be  considered  a  charge  to  such  expenses 
for  the  purposes  specified  in  paragraph  (a)  of  this  section. 


51 

In  case  of  any  such  loss  or  damage  by  fire,  the  Director  General 
shall,  if  given  written  notice  of  the  reciuirements  of  any  mortgage, 
equipment  lease,  or  trust  on  the  property  so  destroyed  or  damaged, 
make  such  restoration  or  replacement,  or  pay  such  value  or  damage, 
in  such  way  as  to  meet  the  requirements  of  such  mortgage,  equip- 
ment lease,  or  trust  in  the  same  manner  as  would  have  been  proper 
in  applying  the  proceeds  of  msurance  on  such  property  if  it  had  been 
insured  by  the  Company  against  loss  or  damage  by  fire  in  accordance 
with  the  terms  of  such  instruments  of  lien;  and  a  compliance  with 
the  written  request  of  the  Company  in  respect  thereof  shall  be  a 
full  acquittance  of  any  obligation  of  the  Director  General  in  the 
I)remises. 

The  foregoing  parts  of  this  paragraph  are  subject  to  the  proviso 
that  in  case  of  loss  or  damage  any  additions  and  betterments  made  in 
connection  with  or  as  a  part  of  the  restoration  or  replacement  of 
property  damaged  or  destroj^ed  and  chargeable  under  the  accounting- 
rules  of  the  Commission  in  force  December  31,  1917,  to  investment 
in  road  and  equipment,  shall  be  charged  to  and  paid  by  the  Company. 

The  Director  General  shall  not  be  liable  to  the  Company  for  any 
loss  or  damage  due  to  the  acts  of  public  enemies. 

(/)  If  any  additions,  betterments,  or  road  extensions  are  made  to 
the  property  taken  over  or  any  equipment  is  added  at  the  expense  of 
the  Compan}^  and  with  the  approval  or  by  order  of  the  Director 
General  during  Federal  control,  he  shall  expend  and  charge  to  rail- 
way operating  expenses  such  sums  either  in  payments  for  labor  and 
materials  or  b}-  payments  into  funds,  as  may  be  requisite  for  the 
proper  maintenance,  repair,  renewal,  retirement,  and  depreciation  of 
such  property  until  the  end  of  Federal  control. 

{g)  The  Company  shall  have  the  right  to  inspect  its  property  at 
all  reasonable  times  during  Federal  control,  and  the  Director  Gen- 
eral shall  provide  reasonable  facilities  for  such  inspection. 

(A)  If  any  question  shall  arise,  either  during  or  at  the  end  of  Fed- 
eral control,  as  to  whether  the  covenants  or  provisions  in  this  section 
contained  are  being  or  have  been  observed,  the  matter  in  dispute 
shall,  on  the  application  of  either  party,  be  referred  to  the  Commis- 
sion which,  after  hearing,  shall  make  such  findings  and  order  as 
justice  and  right  may  require,  which  shall  be  final  as  to  the  questions 
submitted  and  shall  be  binding  on  and  observed  by  both  parties 
hereto,  except  that  either  party  may  take  any  question  of  law  to  the 
courts,  if  he  or  it  so  desires. 

Sectiox  6. — Taxes. 

Sec.  6.  {a)  All  taxes  assessed  under  Federal  or  any  other  govern- 
mental authority  for  the  period  prior  to  January  1,  1918,  including 
a  proportionate  part  of  any  such  tax  assessed  after  December  31, 


52 

1917,  for  a  period  which  includes  any  part  of  1917  or  preceding  years, 
and  unpaid  on  that  date,  all  taxes  commonly  called  war  taxes  which 
have  been  or  may  be  assessed  against  the  Company  under  the  act  of 
Congress  entitled  "An  act  to  provide  revenue  to  defray  war  expenses 
and  for  other  purposes,"  approved  October  3,  1917,  or  under  any  act 
in  addition  thereto  or  in  amendment  thereof,  and  all  taxes  which 
have  been  or  may  b©  assessed  on  property  under  construction,  and  all 
assessments  which  have  been  or  may  be  made  for  public  improve- 
ments, chargeable  under  the  accounting  rules  of  the  Commission  in 
force  December  31,  1917,  to  investment  in  road  and  equipment,  shall 
be  paid  by  the  Company;  but  upon  the  amount  thus  chargeable  to 
investment  interest  shall  be  paid  to  the  Company  during  Federal 
control  at  the  rate  provided  in  paragraph  (d)  of  section  7  hereof. 
Taxes  assessed  during  constiiiction  on  additions,  betterments,  and 
road  extensions  made  by  the  Company  with  the  approval  or  by  order 
of  the  Director  General  during  Federal  control,  shall  be  considered  a 
part  of  the  cost  of  such  additions,  betterments,  and  extensions  and 
shall,  under  the  provisions  of  paragraph  (d)  of  section  7  hereof,  bear 
interest  as  a  part  of  such  cost  fi-om  the  date  of  the  completion  of  such 
additions,  betterments,  or  extensions.  Assessments  for  public  im- 
provements which  do  not  become  a  part  of  the  property  taken  over 
shall  bear  interest  from  the  date  of  the  payment  of  such  assessment. 

(b)  If  any  tax  or  assessment  which  under  this  agreement  is  to  be 
paid  by  the  Company  is  not  paid  by  it  when  due,  the  same  may  be 
paid  by  the  Director  General  and  deducted  from  the  next  installment 
of  compensation  due  under  section  7  hereof.  If  any  taxes  properly 
chargeable  to  the  Director  General  have  been  or  shall  be  paid  by  the 
Company,  it  shall  be  duly  reimbursed  therefor. 

(c)  The  Director  General  shall  either  pay  out  of  revenues  derived 
from  railway  operation  during  the  period  of  Federal  control  or  shall 
save  the  Company  harailess  from  all  taxes  lawfully  assessed  under 
Federal  or  any  other  governmental  authority  for  any  part  of  said 
period  on  the  property  under  such  control,  or  on  the  right  to  operate 
as  a  carrier,  or  on  the  revenues  derived  from  operation,  and  all  other 
taxes  which  under  the  accounting  rules  of  the  Commission  in  force 
December  31,  1917,  are  properly  chargeable  to  "  railway  tax  accruals," 
except  the  taxes  and  assessments  for  which  provision  is  made  in 
paragraph  (a)  of  this  section.  The  Director  General  shall  pay  or 
save  the  Company  harmless  from  the  expense  of  all  suits  respecting 
the  classes  of  taxes  payable  by  him  under  this  agreement. 

(d)  If  any  such  tax  is  for  a  period  which  began  before  January  1, 
1918,  or  continues  beyond  the  period  of  Federal  control,  such  portion 
of  such  tax  as  may  be  apportionable  to  the  periwl  of  Federal  con- 
trol shall  be  paid  by  the  Director  General,  and  the  remainder  shall  be 
paid  by  the  Company. 


53 

(e)  Wlienever  a  period  for  Avhich  a  tax  is  assessed  can  not  be 
detinitely  determined,  so  much  of  such  tax  as  is  payable  in  any  cal- 
endar year  shall  be  treated  as  assessed  for  such  year. 

Section  7. — Compensation. 

Sec.  7.  (a)  The  annual  compensation  guaranteed  to  the  Com- 
pany under  section  1  of  the  Federal  control  act  shall  be  the  sum  of 

dollars  and cents 

($ )    during  etich  year  and  pro  rata  for  each  fractional 

part  of  a  year  of  Federal  control,  subject,  however,  to  any  increase 
or  decrease  in  the  standard  return  hereafter  made  by  the  Commission 
as  provided  in  paragraph  (d)  of  the  preamble  of  this  agreement. 

(b)  The  said  compensation  shall  be  paid  to  the  Company  cjuarterly 
in  equal  installments  on  the  last  days  of  March,  June,  September,  and 
December  of  each  year  for  the  quarter  ending  therewith,  except  that 
the  first  three  installments  shall  be  due  as  of  March  31,  1918,  June 
30, 1918,  and  September  30,  1918,  respectively,  but  shall  be  paid  upon 
the  execution  of  this  agreement;  but  from  each  installment  there  may 
be  deducted  any  amount  then  due  by  the  Company  under  paragrai^hs 
(a)  and  {(I)  of  section  4  hereof,  under  paragraph  (b)  of  section  5 
hereof,  and  under  paragraph  (h)  of  section  6  hereof,  and  all  amounts 
required  to  reimburse  the  United  States  for  the  cost  of  additions  and 
betterments  made  to  the  property  of  the  Company  not  justly  charge- 
able to  the  United  States,  unless  such  matters  are  financed  or  other- 
wise taken  care  of  by  the  Company  to  the  satisfaction  of  the  Director 
General,  and  the  Director  General  may  apportion  any  such  amounts 
to  two  or  more  subsequent  installments:  Provuled,  however^  That 
said  power  to  deduct  amounts  due  or  accruing  under  paragraph  (b) 
of  section  5  hereof  and  the  cost  of  additions  and  betterments  not 
justly  chargeable  to  the  United  States  shall  not  be  so  exercised  as  to 
prevent  the  Company  from  paying  out  the  sums  reasonably  required 
to  support  its  corporate  organization,  to  keep  up  sinking  funds  for 
the  Company's  debts  required  by  contracts  in  force  December  31, 
1917,  to  pa}'  its  taxes,  to  pay  rents  and  other  amounts  (not  chargeable 
to  capital  account)  properly  payable  by  the  Company  for  leased  or 
operated  roads  and  properties,  to  pay  interest  which  has  heretofore 
been  regularly  paid  by  the  Company,  and  interest  on  loans  issued 
during  Federal  control  and  approved  by  the  Director  General,  nor 
shall  such  deduction  be  made  in  respect  of  additions  and  betterments 
which  are  for  war  purposes  and  not  for  the  normal  development  of 
the  Company,  nor  in  respect  of  road  extensions,  nor  in  respect  of 
amounts  due  under  paragraphs  (a)  and  {d)  of  section  4  hereof,  in 
cases  where  the  cm-rent  assets,  including  materials  and  supplies,  of 
the  Company  taken  over  by  the  Director  General  under  the  provisions 


54 

of  this  agreement  clearly  exceed  tiie  current  liabilities  of  the  Com- 
pany paid  or  assumed  by  the  Director  General  under  said  section. 
In  the  event  of  a  difference  as  to  the  fact  whether  additions  and 
betterments  are  for  war  purposes  and  not  for  the  normal  development 
of  the  Company,  or  as  to  whether  an  addition  is  a  road  extension,  the 
question  may,  on  application  of  either  party,  be  referred  to  and  deter- 
mined by  the  Commission. 

The  power  provided  in  this  paragraph  to  deduct  the  amount  due 
by  the  Company  for  the  cost  of  additions  and  betterments  not  justly 
chargeable  to  the  United  States  is  further  declared  to  be  an  emer- 
gency power,  to  be  used  by  the  Director  General  only  when  he  finds 
that  no  other  reasonable  means  is  provided  by  the  Company  to  reim- 
burse the  United  States,  and,  as  contemplated  by  the  President's  proc- 
lamation and  by  the  Federal  control  act,  it  will  be  the  policy  of  the 
Director  General  to  so  use  such  power  of  deduction  as  not  to  inter- 
rupt unnecessarily  the  regular  payment  of  dividends  as  made  by  the 
Company  during  the  test  period. 

Overdue  installments  of  compensation,  or  balances  thereof,  pro- 
vided for  in  this  section  shall  bear  interest  from  maturity  at  the  rate 
of  five  per  cent  per  annum,  except  that  if  the  Director  General  shall, 
prior  to  the  execution  of  this  contract,  have  loaned  the  Company  any 
money,  the  installments  of  compensation  overdue  at  the  date  of  the 
execution  hereof  shall  bear  interest  from  maturity  at  the  same  rate 
as  that  charged  to  the  Company  on  such  loans. 

(c)  During  Federal  control  the  Company  shall  not,  without  the 
prior  approval  of  the  Director  General,  issue  any  bonds,  notes, 
equipment  trust  certificates,  stock,  or  other  securities,  or  enter  into 
any  contracts  (except  contracts  in  respect  of  corporate  affairs  and 
property  not  taken  under  Federal  control),  or  agree  to  pay  interest 
on  its  debt  at  a  higher  rate,  or  for  rent  of  leased  roads  and  proper- 
ties a  larger  amount,  than  the  rates  and  amounts  payable  as  of,  or 
required  by  contracts  in  force  on,  December  31,  1917.  The  Company 
may,  however,  procure  the  authentication  and  delivery  to  it  under 
any  mortgage  or  trust  deed  or  agi^eement  in  force  December  31,  1917, 
of  bonds  or  notes  issuable  thereunder  in  respect  of  additions,  better- 
ments, extensions,  and  equipment,  or  for  refunding  purposes. 

(d)  Upon  the  cost  of  additions  and  betterments,  less  retirements 
in  connection  therewith,  and  upon  the  cost  of  road  extensions,  made 
to  the  property  of  the  Company  during  Federal  control  the  Director 
General  shall,  from  the  completion  of  the  work,  pay  the  Company  a 
reasonable  rate  of  interest,  to  be  fixed  by  him  on  each  occasion.  In 
fixing  such  rate  or  rates  he  may  take  into  account  not  merely  the 
value  of  money  but  all  pertinent  facts  and  circumstances,  whether 
the  money  used  was  derived  from  loans  or  otherwise,  provided  that 
to  the  extent  that  the  mouev  is  advanced  bv  the  Director  General 


01) 

or  is  obtained  by  the  Company  from  loans  or  from  the  proceeds  of 
securities  the  rate  or  rates  shall  be  the  same  as  that  charged  l>y  the 
Director  General  for  loans  to  the  Company  or  to  other  companies 
of  similar  credit. 

(e)  From  its  compensation  so  received  or  from  other  income,  if 
adequate  for  the  purpose,  the  Compam^  shall  make  all  pa3^ments  of 
interest,  rents  (other  than  the  equipment  rents,  joint  facility  rents, 
and  rents  classified  as  operating  expenses,  mentioned  in  pai^agraph 
(/')  of  section  4  hereof),  and  other  sums  necessary  to  prevent  a  de- 
fault under  any  mortgage  or  lease  of  any  of  the  property  described 
in  paragraph  (a)  of  section  2  hereof;  and  if  at  any  time  during  Fed- 
eral control  the  Company,  by  virtue  of  any  change  in  the  right  of 
possession  (subject  to  the  rights  of  the  United  States)  to  any  of  said 
property  or  otherwise,  shall  no  longer  be  entitled  as  between  itself 
and  any  other  person  or  corporation  to  receive  the  entire  compensa- 
tion herein  provided,  such  compensation  shall  be  apportioned  and 
paid,  as  betweeji  the  parties  entitled  thereto,  as  justice  and  right  may 
require. 

Section  8. — Claims  for  Losses  on  Additions.  Etc. 

Sec.  8.  (a)  Prompt  notice  in  writing,  except  as  provided  in  para- 
graph (d)  of  this  section,  shall  be  given  the  Company  of  the  mak- 
ing or  ordering  of  any  additions,  betterments,  or  road  extensions, 
including  terminals,  motive  power,  cars,  or  other  equipment  to  or  for 
the  property  of  the  Company  costing  more  than  one  thousand  dollars, 
with  an  estimate  of  the  cost  thereof.  Such  notice  shall  be  given 
before  the  beginning  of  the  work  or  the  acquisition  of  the  property 
whenever  in  the  judgment  of  the  Director  General  it  is  practicable 
to  do  so.  Within  a  reasonable  time  after  the  completion  of  the  work 
or  the  acquisition  of  the  property,  a  written  statement  of  the  final 
cost  thereof  shall  be  given  the  Company.  There  shall  be  furnished 
the  Company,  as  soon  as  practicable  after  the  end  of  each  month,  a 
written  statement  of  all  expenditures  estimated  to  cost  one  thousand 
dollars  or  less  chargeable  to  investment  in  road  and  equipment  made 
during  the  month,  with  a  brief  description  of  the  work  done  or  of 
the  property  acquired;  and  such  statement  shall  constitute  all  the 
notice  of  additions  and  betterments  costing  one  thousand  dollars  or 
less  required  by  (7j>)  and  (c)  of  this  section.  The  notices  provided 
in  this  paragraph  may  be  given  to  the  president  of  the  Company 
unless  the  Company  designates  some  other  officer  to  receive  the  same, 
in  which  event  the  notice  shall  be  given  to  such  other  officer. 

(h)  Any  claim  of  the  Company  for  loss  accruing  to  it  by  reason 
of  expenditures  for  additions  and  betterments  made  to  the  property 
of  the  Company  during  Federal  control  in  connection  with  or  as  a 
part  of  the  Avork  of  maintaining,  repairing,  and  renewing  the  Com- 


56 

pany's  property  and  chargeable  under  the  accounting  rules  of  the 
Commission  in  force  December  31,  1917,  to  invastment  in  road  and 
equipment,  except  such  expenditures  as  are  incurred  in  connection 
Avith  the  replacement  of  buildings  and  structures  in  new  locations, 
may  be  determined  by  agreement  between  the  Director  General  and 
the  Company,  or,  failing  such  agreement,  as  to  the  fact  or  amount 
of  such  loss,  the  questions  at  issue  may,  upon  the  application  of  either 
party  at  any  time  after  the  filing  of  the  statement  of  claim  herein- 
after referred  to,  be  ascertained  in  the  manner  provided  in  section  3 
of  the  Federal  control  act :  Provided^  hoioever^  That  no  loss  shall  be 
claimed  by  the  Company  and  no  money  shall  be  due  to  it  in  respect 
of  such  additions  and  betterments  upon  the  ground  that  the  actual 
cost  thereof  at  the  tiuie  of  construction  was  greater  than  under  other 
market  and  commercial  conditions;  and  for  the  purpose  of  deter- 
mining such  controversy  the  amount  paid  for  any  addition  or  better- 
ment shall  be  deemed  the  fair  and  reasonable  cost  thereof  and  shall 
be  taken  as  the  basis  for  such  determination;  nor  unless  the  Com- 
pany, within  sixty  days  of  notice  to  it  that  the  work  will  be  done, 
shall  give  the  Director  General  notice  of  objection  thereto  and  shall 
file  with  the  Director  General  a  statement  of  its  claim  within  ninety 
days  after  notice  of  the  completion  of  the  work. 

{c)  Any  claim  of  the  Company  for  loss  accruing  to  it  by  reason 
of  any  additions  and  betterments  which  are  not  made  in  connection 
Avith  or  as  a  part  of  the  work  of  maintaining,  repairing,  and  renew- 
ing the  Company's  property,  or  accruing  to  it  in  connection  with 
maintenance  in  the  replacement  of  buildings  and  structures  in  new 
locations,  or  by  reason  of  road  extensions,  terminals,  motive  power, 
cars,  or  other  equipment  made  to  or  provided  for  the  property  of  the 
Company  during  Federal  control,  may  be  determined  by  agreement 
between  the  Director  General  and  the  Company,  or  failing  such 
agreement  as  to  the  fact  or  amount  of  such  loss,  may,  by  proceedings 
instituted  not  later  than  six  months  after  the  end  of  Federal  control, 
be.  ascertained  in  the  manner  provided  in  section  3  of  the  Federal 
control  act:  Provided^  hotvever.  That  no  loss  shall  be  claimed  by  the 
Company  and  no  money  shall  be  due  to  it  in  respect  of  such  additions, 
betterments,  road  extensions,  terminals,  motive  power,  cars,  or  other 
equipment  mentioned  in  this  paragraph  upon  the  ground  that  the 
actual  cost  thereof  at  the  time  of  construction  or  acquisition  was 
greater  than  under  other  market  and  commercial  conditions;  and 
for  the  purpose  of  determining  such  controversy  the  amount  paid 
for  any  additions,  betterments,  road  extensions,  terminals,  motive 
power,  cars,  or  other  equipment  shall  be  deemed  the  fair  and  rea- 
sonable cost  thereof  and  shall  be  taken  as  the  basis  for  such  determi- 
nation; nor  unless  within  sixty  days  after  notice  to  the  Company  of 
such  construction  or  acquisition  written  notice  is  given  to  the  Direc- 


07 

tor  (ieneial  by  the  Cortipany  that  it  will  claim  a  loss  in  respe<.t 
thereof.  With  and  as  a  pait  of  such  notice  the  Company  shall  state 
its  objections  to  buch  construction  or  acquisition  as  far  as  reasonably 
practicable  at  the  time.  Nothing  in  this  agreement  shall  be  con- 
strued as  barring  the  United  States  from  contending  that  no  loss 
within  the  meaning  of  the  Federal  control  act  accrued  to  the  Com- 
pany by  reason  of  any  additions,  betterments,  or  road  extensions 
made  during  Federal  control  by  order  or  approval  of  the  Director 
General,  if  it  is  made  to  appear  that  the  Company  itself  but  for 
Federal  control  should  in  the  exercise  of  sound  judgment  have  made 
such  addition,  betterment  or  road  extension. 

(d)  Where  additions,  betterments,  or  road  extensions  or  terminals, 
motive  power,  cars,  or  other  equipment  have  been  made  to  or  pro- 
vided for  the  property  of  the  Company  during  Federal  control  but 
prior  to  the  execution  of  this  agreement,  the  Director  General  shall 
not  be  i-equired  to  give  the  notice  thereof  provided  for  in  paragraph 
( a)  of  this  section  and  notice  by  the  Company  of  any  claim  of  loss 
in  respect  thereto  may  be  given  the  Director  General  within  ninety 
days  after  the  execution  hereof;  and  such  claims  shall  thereafter  be 
jjioceeded  with  in  the  manner  provided  in  paragraph  (&)  or  para- 
graph {c)  of  this  section,  as  the  case  may  be. 

{e)  The  Director  General  shall  reimburse  the  Company  for  the 
amount  of  loss  ascertained  under  this  section  with  a  proper  adjust- 
ment of  interest  thereon. 

(/)  The  Director  General  shall  not  acquire  any  motive  power, 
cars,  or  other  equipment  at  the  expense,  or  on  the  credit,  of  the  Com- 
pany in  excess  of  what  in  his  judgment  is  necessary,  in  addition  to 
its  then  existing  equipment,  to  provide  for  the  traffic  requirements 
«>f  its  own  system  of  transportation ;  but  this  provision  shall  not 
jjrevent  the  Director  General,  after  the  acquisition  of  such  equipment, 
from  using  the  same,  or  any  part  thereof,  on  the  line  of  any  other 
transportation  system  operated  by  him. 

Section  0. — Final  Accounting. 

Sec.  9  {a)  At  the  end  of  Federal  control  all  the  property  described 
in  paragraph  {a)  of  section  2  hereof  shall  be  returned  to  the  Com- 
pany, together  with  all  repairs,  renewals,  additions,  betterments,  re- 
placements, and  road  extensions  thereto  Avhicli  have  been  made  dur- 
ing Federal  control,  except  as  any  part  thereof  maj^  have  been  de- 
stroyed or  retired  and  not  replaced,  in  which  case  the  provisions  of 
section  5  hereof  sliall  govern  and  except  that  the  Director  General 
shall  not  be  obliged  to  restore  or  replace  propert}^  destroyed  or  dam- 
aged b}^  the  acts  of  public  enemies. 

ih)  At  the  end  of  Federal  control  the  Director  General  shall  re- 
turn to  the  Company  all  uncollected  accounts  received  by  him  from 


58 

the  Company  and  also  materials  and  supplies  equal  in  quantity,  qual- 
ity, and  relative  usefulness  to  that  of  the  materials  and  supplies  which 
he  received  and  to  the  extent  that  the  Director  General  does  not  re- 
turn such  materials  and  supplies  he  shall  account  for  the  same  at 
prices  prevailing  at  the  end  of  Federal  control.  To  the  extent  that 
the  Company  receives  materials  and  supplies  in  excess  of  those  de- 
livered by  it  to  the  Director  General  it  shall  account  for  the  same  at 
the  prices  prevailing  at  the  end  of  Federal  control,  and  the  balance 
shall  be  adjusted  in  cash. 

(c)  The  total  amount  of  the  account  "  Net  balance  receivable  from 
agents  and  conductors  "  at  the  end  of  Federal  control  may  be  turned 
over  by  the  Director  General  to  the  Company.  He  may  also  turn 
over  all  assets  which  have  accrued  out  of  operation;  and  the  Com- 
pany shall,  to  the  extent  of  the  cash  received  or  realized  from  such 
assets,  pay  and  charge  to  the  Director  General  all  expenses  arising 
out  of  railway  operations  during  Federal  control,  including  repara- 
tion and  other  claims,  and  may,  unless  objection  is  made  by  the  Di- 
rector General,  pay  and  charge  to  him  any  such  expenses  including 
reparation  and  other  claims  in  excess  of  the  cash  so  received  or  re- 
alized. On  the  first  day  of  the  third  month  following  the  termina- 
tion of  Federal  control  an  accounting  between  the  parties  shall  be 
had,  and  so  on  the  first  of  each  third  month  thereafter.  Any  balance 
found  due  either  party  shall  be  payable  as  of  the  date  on  which  the 
account  is  stated  and  shall  bear  interest  until  paid. 

{d)  At  the  end  of  Federal  control  there  shall  be  paid  to  the  Com- 
pany any  balance  then  remaining  unpaid  of  the  cash  received  from 
the  Company  at  the  'beginning  of  or  during  Federal  control,  together 
with  any  unpaid  interest  which  may  have  accrued  upon  the  same. 
There  shall  also  be  paid  to  the  Company  any  funds  created  under  the 
provisions  of  this  agreement,  except  to  the  extent  that  such  funds 
may  have  been  properly  used  under  this  agreement. 

(e)  Wherever  under  any  provision  of  this  section  there  is  to  be 
an  adjustment  of  interest,  it  shall  be  at  the  rate  of  five  per  cent  per 
annum  unless  the  parties  shall  in  any  case  agree  on  a  different  rate. 

(/)  After  Federal  control  no  claim  by  or  against  the  Director  Gen- 
eral shall  be  settled  by  the  Company  against  the  written  objection  of 
the  Director  General  or  the  Attorney  General  of  the  United  States. 
The  conduct  of  all  litigation  before  any  court  or  commission  arising 
out  of  such  disputed  claims  or  out  of  operations  during  P'ederal  con- 
trol shall  l)e  in  charge  of  the  Company's  legal  force  and  the  expense 
thereof  shall  be  paid  by  the  (Company;  but  the  Director  General  or 
the  Attorney  General  may,  at  the  expense  of  the  United  States,  em- 
ploy special  counsel  in  connection  wnth  any  such  litigation. 

Execution. 


[Form  B,  October  22.   1918.— For  Conipanios  with   Siisidinrios.  ] 

AGREEMENT  BETWEEN  THE  DIRECTOR  GENERAL  OF  RAILROADS 
AND COMPANY  AND  OTHER  CORPORATIONS. 

Preamble  and  Recitals. 

This  agreement,  made  this day  of ,  1918, 

between  WilUani  G,  McAdoo,  Director  General  of  Raih'oads,  herein- 
after called  the  Director  General,  acting-  on  behalf  of  the  United 
States  and  the  President,  mider  the  powers  conferred  by  the  procla- 
mations of  the  President  hereinafter  referred  to,  party  of  the  first 

part,  and  the 

parties  of  the  second  part : 

Witnesseth  that — 

(a)  Whereas  by  a  proclamation  dated  December  26,  1917,  the 
President,  acting  under  the  powers  conferred  on  him  by  the  Consti- 
tution and  laws  of  the  United  States,  by  the  joint  resolutions  of  the 
Senate  and  House  of  Representatives  bearing  date  April  6  and  De- 
cember 7,  1917,  respectively,  and  particularly  under  the  powers  con- 
ferred by  section  1  of  the  act  of  Congress  approved  August  29,  191G, 
entitled  "  An  act  making  appropriations  for  the  support  of  the  Army 
for  the  fiscal  year  ending  June  30,  1917,  and  for  other  purposes," 
took  possession  and  assumed  control  at  12  o'clock  noon  on  December 
28,  1917,  of  certain  railroads  and  systems  of  transportation,  includ- 
ing the  railroads  and  transportation  systems  of  the  Companies  and 
the  appurtenances  thereof,  and  directed  that  the  possession,  control, 
operation,  and  utilization  of  the  transportation  systems  thus  taken 
should  be  exercised  by  and  through  William  G.  McAdoo,  appointed 
Director  General  of  Railroads;  and 

(h)  Whereas  the  Congress  of  the  United  States,  by  an  act  ap- 
proved March  21,  1918,  hereinafter  called  the  Federal  control  act, 
has  authorized  the  President  to  enter  into  agreements  with  the  com- 
panies owning  railroads  and  systems  thus  taken  over  for  the  main- 
tenance and  upkeep  of  the  same  during  the  period  of  Federal  control, 
for  the  determination  of  the  rights  and  obligations  of  the  parties  to 
the  agreement  arising  from  or  out  of  Federal  control  including  the 
compensation  to  be  received  or  guaranteed,  and  for  other  purposes, 

(59) 


60 

as  in  said  act  more  fully  set  out.  and  autliorized  the  President  to  exer- 
cise any  of  the  powers  by  said  act  or  theretofore  gi-anted  hini  with  re- 
lation to  Federal  control  through  such  agencies  as  he  might  de- 
termine; and 

(c)  Whereas  by  a  proclamation  dated  March  29,  1918,  the  Presi- 
dent, acting  under  the  Federal  control  act  and  all  other  powers  him 
thereto  enabling,  authorized  the  Director  General  either  personally  or 
through  such  divisions,  agencies,  or  pei^ons  as  he  may  appoint,  and 
in  his  own  name  or  in  the  name  of  such  divisions,  agencies,  or  per- 
sons, or  in  the  name  of  the  President,  to  agree  with  the  carriers,  or 
any  of  them,  or  with  any  other  person  in  interest,  upon  the  amount 
of  compensation  to  be  paid  pursuant  to  law,  and  to  sign,  seal,  and 
deliver  in  his  own  name  or  in  the  name  of  the  President  or  in  the 
name  of  the  United  States  such  agreements  as  may  be  necessary  and 
expedient  with  the  several  carriers  or  other  persons  in  interest 
respecting  compensation,  or  any  other  matter  concerning  which  it 
may  be  necessary  or  expedient  to  deal,  and  to  make  any  and  all  con- 
tracts, agreements,  or  obligations  necessary  or  expedient  and  to  issue 
any  and  all  orders  w-hich  may  in  any  way  be  found  necessary  and 
expedient  in  connection  with  the  Federal  control  of  systems  of  trans- 
portation, railroads,  and  inland  waterways  as  fully  in  all  respects 
as  the  President  is  authorized  to  do,  and  generally  to  do  and  per- 
form all  and  singular  the  acts  and  things  and  to  exercise  all  and 
singular  the  powers  and  duties  which  in  and  by  the  said  act,  or  any 
other  act  in  relation  to  the  subject  thereof,  the  President  is  author- 
ized to  do  and  perform;  and 

(d)  Whereas  the  Interstate  Commerce  Commission  has  certified 
to  the  President  the  amount  of  the  average  annual  railway  operating 
incomes  of  the  said  Companies,  computed  in  the  manner  provided 
in  section  1  of  the  Federal  control  act,  and  the  aggregate  of  which 

amounts   is 

dollars,  and cents  ($ ),  subject  to  such  changes 

and  corrections  as  the  Commission  may  hereafter  determine  and 
certify  to  be  requisite  in  order  that  the  accounts  and  reports  of  the 
Companies  used  by  the  Commission  as  the  basis  of  computing  said 
average  annual  railway  operating  incomes  may  be  brought  into 
conformity  with  the  accounting  rules  or  regulations  of  the  Commis- 
sion in  force  at  the  time  of  such  accounting,  or  in  order  to  correct 
computations  based  on  such  accounts  or  reports. 

Now,  Therefore,  the  parties  hereto,  of  the  first  and  second  parts, 
respectively,  each  in  consideration  of  the  agi-eements  of  the  other 
herein  contained,  do  lioreby  covenant  and  agree  to  and  with  each 
other  as  follow<: 


Section  1. — Privity.  Altkkations,  Definitions,  Etc. 

Sec.  1.  {a)  This  agreement  shall  be  binding  upon  the  United 
States,  the  Director  General  and  his  successors,  and  upon  the  Com- 
panies, and  their  respective  successors  and  assigns. 

Wherever  in  this  agreement  the  word  "  Company  "  is  used,  it  shall 

be  understood  as  meaning  the 

Company :  the  words  "  Affiliated  Companies  "  shall  be  understood  as 

meaning  the 

other  corporations,  parties  to  this  agreement;  and  the  word  "Com- 
panies"' shall  be  understood  as  meaning  the corporations, 

parties  to  this  agreement. 

The  rights  and  obligations  of  the  Companies  in  this  agreement  con- 
tained are  several,  not  joint.  The  Company  owns  all  the  stock,  ex- 
cept directors'  qualifying  shares,  of  all  the  Affiliated  Companies. 

This  agreement  shall  not  be  construed  as  creating  any  right,  claim, 
privilege,  or  benefit  against  any  party  hereto  in  favor  of  any  state  or 
any  subdivision  thereof,  or  of  any  individual  or  corporation  other 
than  the  parties  hereto. 

(b)  The  provisions  of  this  agreement  may  be  altered,  amended,  or 
added  to  by  and  only  by  mutual  consent  signified  by  instruments  in 
writing  signed  by  the  Director  General  and  by  some  officer  of  the 
Company  thereto  duly  authorized  by  the  Board  of  Directors  of  the 
Company. 

(c)  Wherever  in  this  agreement  the  word  "Commission"  is  used 
it  shall  be  understood  as  meaning  the  Interstate  Commerce  Commis- 
sion, acting  by  divisions  or  otherwise  as  authorized  by  law ;  but  any 
party  shall  have  the  right  to  have  the  decision  of  any  division  re- 
viewed by  the  Commission  sitting  as  a  whole. 

(d)  Wlierever  in  this  agi'eement  the  words  "Federal  control"  are 
used  to  indicate  a  period  of  time,  they  shall  be  understood  as  mean- 
ing the  period  from  12  o'clock  midnight  of  December  31,  1917,  to 
and  including  the  day  and  hour  on  which  said  control  shall  cease. 

(e)  Wherever  in  this  agreement  the  words  "  test  period  "  are  used, 
they  shall  be  understood  as  meaning  the  period  between  July  1,  1914, 
and  June  30.  1917,  both  inclusive. 

(/)  Wherever  in  this  agreement  the  words  "standard  return"  are 
used,  they  shall  be  understood  as  meaning  average  annual  railway 
operating  income,  computed  in  the  manner  provided  in  section  1  of 
the  Federal  control  act,  and  ascertained  and  certified  by  the  Commis- 
sion. 

(r/)  Wherever  in  this  agi^eement  the  words  "  Director  General "  are 
used,  they  shall  be  understood  as  designating  William  G.  McAdoo,  or 
such  other  person  as  the  President  may  from  time  to  time  appoint  to 
exercise  the  powers  conferred  on  him  by  law  with  relation  to  Federal 


62 

control,  or  such  agents  or  agencies  as  the  Director  General  may  from 
time  to  time  appoint  for  the  purpose:  and  wherever  byj;his  agreement 
an}'^  notice  is  to  be  given  by  the  Director  General,  the  same  may  ]je 
given  in  his  name  by  any  subordinate  thereto  duly  authorized. 

{h)  Wherever  the  property  of  any  of  the  Companies  is  referred  to 
in  this  agreement  it  shall  be  understood  as  including  all  the  property 
described  in  paragraph  {a)  of  section  2  hereof,  whether  owned  by  or 
leased  to  the  Companies,  and,  where  the  context  permits,  all  additions 
or  betterments  thereto  or  extensions  thereof  made  during  Federal 
control ;  and  as  to  all  such  leased  propert}^  the  Companies  shall  have 
the  benefit  of  and  be  subject  to  all  the  obligations  and  provisions  of 
this  agreement  and  shall  be  subject  to  all  duties  imposed  by  law  in 
respect  of  such  leased  property. 

(^)  The  descriptive  words  at  the  heads  of  the  several  sections  of 
this  agreement  and  the  table  of  contents  are  inserted  for  convenience 
merely,  and  are  not  to  be  used  in  the  construction  of  the  agreement. 

Section  2. — Property  Takex  0^^:R. 

Sec.  2.  The  railroads  and  systems  of  transportation  of  the  Com- 
pany and  of  its  said  Affiliated  Companies  of  which  the  President  has 
taken  over  possession,  use,  control,  and  operation  shall  be  considered 
as  including: 

{a)  The  following  roads  and  properties: 


together  with  all  branches  and  tracks,  trackage,  bridge,  and  terminal 
rights,  and  lines  of  railroad  owned  by  or  leased  to  and  operated  by 
any  of  the  Companies  as  a  part  of  their  systems  of  transportation, 
and  all  other  property  of  the  Companies,  with  the  appurtenances 
thereof,  whether  included  in  the  foregoing  list  or  not,  the  revenues 
of  which  were  used,  or  which,  if  the  property  had  been  then  owned 
by  or  leased  to  the  Companies  and  had  then  been  revenue  bearing, 
would  have  been  used,  in  computing  the  standard  return  of  any  of 
the  Companies. 

Each  of  the  Companies  reserves  to  itself  the  benefit  of  all  leases  (and 
of  all  rents  and  revenues  accruing  therefrom)  of  parts  of  its  right  of 
Avay.  station  grounds,  and  other  property,  the  revenues  from  which 
under  the  accounting  rules  of  the  Commission  in  force  during  the 
test  period  Avere  properly  creditable  to  "  miscellaneous  rent  income  " 
or  "miscellaneous  income."  Each  of  the  Companies  grants  to  the 
Director  General  all  its  rights  to  terminate  leases  of  any  part  of  its 
right  of  way,  yards,  or  station  grounds,  and  to  occupy  and  use  the 
])remises  of  any  such  lessee  wlien,  in  his  judgment,  the  same  is  re- 
quired for  operating  purposes.     Each  of  the  Companies  shall  have 


63 

for  its  own  benefit  the  right  to  lease  for  industrial  sites  or  other  pur- 
poses such  portion  of  its  right  of  way,  yards,  or  station  grounds,  or 
structures  thereon  as  are  not  required  by  the  Director  General  for 
operating  purposes,  and  to  receive  and  enjoy  the  rentals  therefrom, 
subject  to  the  right  of  the  Director  General  to  cancel  any  such  lease 
and  to  occupy  the  premises  or  structures  whenever,  in  his  judgment, 
the  same  are  necessary  for  operating  purposes.  All  expenses  con- 
nected with  any  such  property  heretofore  or  hereafter  leased  or  oth- 
erwise occupied,  as  in  this  paragraph  provided,  including  taxes 
thereon  which  during  the  test  period  were  not  charged  to  railway 
tax  accruals,  shall  be  paid  by  the  Companies  while  receiving  the 
revenues  therefrom. 

(h)  All  materials  and  supplies  on  hand  at  midnight  December  31, 
1917. 

(c)  All  balances  in  the  account  or  accounts  representing  the  total 
of  "  Net  balance  receivable  from  agents  and  conductors  "  as  of  mid- 
night December  31,  1917. 

Section   3. — Acceptance. 

Sec.  3.  (a)  The  Companies  accept  all  the  terms  and  conditions  of 
the  Federal  control  act  and  any  regulation  or  order  made  by  or 
through  the  President  under  authority  of  said  act  or  of  that  portion 
of  the  act  approved  August  29,  1916,  referred  to  in  paragraph  (a) 
of  the  preamble  to  this  agreement  which  autliorizes  the  President  in 
time  of  war  to  take  possession,  assume  control,  and  utilize  systems 
of  transportation;  and  they  further  and  expressly  accept  the  cove- 
nants and  obligations  of  the  Director  General  in  this  agreement  set 
out  and  the  rights  arising  thereunder  in  full  adjustment,  settlement, 
satisfaction,  and  discharge  of  any  and  all  claims  and  rights,  at  law 
or  in  equity,  which  they  or  any  of  them  now  have  or  hereafter  can 
have,  otherwise  than  under  this  agreement,  against  the  United  States, 
the  President,  the  Director  General,  or  any  agent  or  agency  thereof, 
for  compensation  under  the  Constitution  and  laws  of  the  United 
States  for  the  taking  possession  of  their  property,  and  for  the  use, 
control,  and  operation  thereof  during  Federal  control,  and  for  any 
and  all  loss  and  damage  to  their  business  or  traffic  by  reason  of  the 
diversion  thereof  or  otherwise  which  has  been  or  may  be  caused  by 
said  taking  or  by  said  possession,  use,  control,  and  operation. 

No  claim  is  made  by  the  Companies  for  compensation  for  the 
period  between  noon  of  December  28  and  midnight  of  December  31, 
1917 ;  and  the  revenues  of  said  period  shall  belong  to  the  Companies, 
and  the  expenses  thereof  shall  be  paid  by  them,  allocated  in  both 
cases  as  provided  in  paragraph  (b)  of  section  4  hereof. 

(b)  The  Companies,  on  their  own  initiative  or  npon  the  request 
of  the  Director  General,  shall  take  all  appropriate  and  necessary  cor- 


64 

porate  action  to  carry  out  the  obligations  assumed  by  them  in  this 
agreement  or  lawfully  imposed  upon  them  by  or  pursuant  to  the 
proclamation  of  December  26,  1917,  or  by  the  Federal  control  act. 

(c)  The  Federal  control  act  being  in  section  16  thereof  expressly 
declared  to  be  emergency  legislation  enacted  to  meet  conditions  grow- 
ing out  of  war,  nothing  in  this  agreement  shall  be  construed  as  ex- 
pressing or  prejudicing  the  future  policy  of  the  Federal  Government 
concerning  the  ownership,  control,  or  regulation  of  the  Companies, 
or  the  method  or  basis  of  the  capitalization  thereof,  and  the  recitals 
or  provisions  of  this  agreement  shall  not  be  used,  as  evidence  or 
otherwise,  by  or  against  any  party  hereto  in  any  pending  or  future 
proceeding  which  involves  the  acquisition  or  valuation  of  the  prop- 
erty of  any  of  the  Companies  or  any  part  thereof;  but  nothing  in 
this  paragraph  shall  be  taken  or  construed  as  affecting  the  settlement 
and  discharge  contained  in  paragraph  (a)  of  this  section,  nor  as 
limiting  or  qualifying  any  of  the  provisions  of  said  paragraph  for 
the  purposes  thereof,  nor  as  limiting  the  use  of  this  agreement  as 
evidence  in  any  proceeding  under  this  agi'eement  or  under  the 
Federal  control  act. 

Section  4. — Operation  and  Accounting  During  Federal  Control. 

Sec.  4.  {a)  All  amounts  received  by  the  Director  General  under 
paragraph  [c)  of  section  2  hereof  and  all  other  amounts  whether 
received  from  the  Companies  in  cash  or  collected  or  realized  upon  by 
him  from  current  operating  assets  belonging  to  the  Companies  or 
arising  from  railway  operations  prior  to  midnight  of  December  31, 
1917,  shall  be  credited  by  him  to  the  Companies;  and  tlie  Director 
General  shall,  to  the  extent  of  the  cash  so  received  or  realized,  pay 
and  charge  to  the  Companies  all  expenses  arising  out  of  railway 
operations  prior  to  January  1, 1918,  including  reparation  claims,  and, 
unless  objectetl  to  by  the  Company,  may  pay  and  charge  to  the  Com- 
panies any  of  such  expenses,  including  reparation  claims,  in  excess 
of  the  cash  so  received  or  realized.  Balances  of  the  above  accounts 
shall  be  struck  quarterly  on  the  last  days  of  March,  June,  September, 
and  December  of  each  year,  and  the  cash  balance  found  on  such  ad- 
justments to  be  due  either  party  shall  be  then  payable  and,  if  not 
paid,  shall  bear  interest  at  the  rate  of  6  per  cent  per  annum,  unless 
the  parties  shall  agree  upon  a  different  rate;  except  that  the  rate  of 
interest  on  any  portion  of  a  balance  found  due  to  the  Companies 
Avhich  is  derived  from  cash  in  bank  to  the  credit  of  the  Companies 
on  interest,  shall  be  adjusted  in  each  case  independently  of  this 
contract  as  the  parties  may  agree. 

{h)   Railway   operating   expenses,   reparation   and   other   claims, 
hire  of  equipment  and  joint  facility  rents  shall  be  allocated  with 


65 

reference  to  the  time  Tihen  inciirred  as  between  the  period  prior  and 
subsequent  to  midnight  of  December  31,  1917,  and  as  between  the 
period  of  Federal  control  and  the  period  subsequent  thereto.  Kail- 
way  operating-  revenues  shall  be  allocated  as  between  the  period  prior 
ami  subsequent  to  midnight  of  December  31.  1917,  in  accordance  with 
the  established  accrual  practices  of  the  Companies ;  except  that  whera 
prior  to  midnight  of  December  31.  1917,  the  Companies'  part  of  a 
service  on  through  business  had  been  completed  on  carload  lots  on 
their  own  lines  had  reached  destination,  the  revenue  of  the  Com- 
panies for  such  service  shall  be  allocated  to  them ;  but  as  to  classes  of 
traffic  where  in  the  opinion  of  the  Director  General  such  allocation 
will  involve  undue  delay  or  undue  absorption  of  accounting  labor, 
such  revenues  shall  be  allocated  in  accordance  with  the  established 
accrual  practices  of  the  Companies.  Like  methods  of  accruing  and 
allocating  such  revenues  shall  be  made  at  the  end  of  Federal  control, 

(e)  All  expenditures  made  by  the  Director  General  during  Federal 
control  for  additions  and  betterments,  exclusiA'e  of  equipment,  or 
for  extensions  begun  prior  to  January  1,  1918,  shall  be  charged  to  the 
Companies,  and  if  the  completion  of  any  such  addition,  betterment, 
or  extension  is  approved  or  ordered  by  the  Director  General,  the 
Company  shall  be  entitled  under  the  provisions  of  paragraph  (d) 
of  section  7  hereof  to  interest  on  the  cost  thereof  from  the  comple- 
tion of  the  Avork:  but  no  interest  (except  to  the  extent  tliat  the  same 
may  be  allowed  and  included  in  the  com.pensation  provided  for  in 
paragraph  (a)  of  section  7  hereof)  shall  be  due  the  Company  upon 
any  such  expenditures  for  work  done  prior  to  January  1,  1918. 
Payments  for  all  equipment  ordered  or  under  construction  by  any 
of  the  Companies  prior  to  January  1,  1918,  but  delivered  on  or  after 
that  date,  shall  also  be  considered  as  expenditures  made  by  order  or 
approval  of  the  Director  General  under  paragraph  (d)  of  section 
7  hereof.  Interest  during  construction  payable  under  this  para- 
graph, and  also  interest  during  construction  on  the  cost  of  any  addi- 
tions, betterments,  and  road  extensions  made  by  the  Companies  or  at 
their  expense  to  the  Companies'  property  during  Federal  control, 
shall  be  included  in  the  cost  of  the  work. 

(d)  Cash  receipts  or  disbursements  and  other  items  arising  out 
of  transactions  which  do  not  enter  into  or  form  a  part  of  those  used 
in  determining  the  Companies'  standard  return  shall  not  be  re- 
ceived or  paid  by  the  Director  General  unless  such  transactions  are 
negotiated  or  conducted  by  his  order  for  account  of  the  Companies 
and  with  the  consent  of  the  Company.  When  moneys  are  so  received 
or  paid  by  the  Director  General  in  connection  with  such  corporate 
transactions  they  shall  be  credited  or  charged  to  the  Companies. 
There  shall  be  an  accounting  of  the  amounts  due  by  or  to  any  of  the 
105S89°~19 0 


66 

parties  under  this  paragraph  at  the  end  of  each  quarter  year  of 
Federal  control,  and  the  amount  so  found  due  shall  be  then  payable 
and  if  not  paid  shall  bear  interest  as  provided  in  paragraph  (a)  of 
this  section. 

(e)  All  sums  paid  by  the  Director  General  to  maintain  pension 
funds  or  pension  obligations  or  practices,  and  all  contributions  to 
Young  Men's  Christian  Associations  of  employees,  employees'  sav-, 
ings  fimds,  relief  funds  or  associations,  reading  rooms,  or  health, 
accident,  or  death  benefits  for  employees,  shall  be  treated  as  a  part 
of  railway  operating  expenses  during  Federal  control. 

(/)  All  salaries  and  expenditures  incurred  by  the  Companies  dur- 
ing Federal  control  for  purposes  which  relate  to  the  existence  and 
maintenance  of  the  corporations,  or  to  the  properties  of  the  Com- 
panies not  taken  over  by  the  President,  or  to  negotiations,  contracts, 
valuations,  or  any  business  controversy  with  the  Government  or  any 
branch  thereof,  and  which  are  not  specially  authorized  by  the 
Director  General,  shall  be  borne  by  the  Companies;  except  that  the 
expenses  of  valuation  now  being  made  by  the  Commission  to  the 
extent  that  they  are,  in  the  opinion  of  the  Director  General,  neces- 
sary to  comply  with  the  valuation  orders  and  other  requirements  of 
the  Commission  and  to  the  cooperation  of  the  Companies  in  the 
making  of  such  valuation,  shall  be  paid  by  the  Director  General  as 
a  part  of  railway  operating  expenses.  If  the  Company  is  dissatisfied 
with  the  ruling  of  the  Director  General  it  may  appeal  to  the  Com- 
mission, whose  decision  shall  be  final. 

(g)  The  Director  General  shall  furnish  for  additions,  betterments 
and  road  extensions  to  the  Companies'  property  approved  or  ordered 
by  him  any  of  the  materials  and  supplies  taken  over  under  parapraph 
(h)  of  section  2  hereof,  or  purchased  by  him  and  held  for  use  in 
comiection  with  the  Companies'  property,  in  so  far  as,  in  his  judg- 
ment, he  can  do  so  with  due  regard  to  his  own  requirements.  Ma- 
terials and  supplies  so  furnished  shall  be  charged  to  the  Com- 
panies at  cost. 

(A)  The  Director  General  shall  at  his  option  be  substituted  for  the 
period  of  Federal  control  in  the  place  of  the  Companies  in  respect 
of  the  benefits  and  obligations  of  contracts  relating  to  operation  in 
force  January  1,  1918  (including  contracts  made  by  subsidiaries  for 
the  use  and  benefit  of  the  Companies  and  the  right  to  abrogate  or 
change  and  make  new  contracts  with  express  companies  for  the 
period  of  Federal  control),  except  as  to  contracts  between  the  Com- 
panies and  subsidiary  companies  which  shall  be  considered  and 
treated  as  arrangements  or  practices;  and  the  Director  General  shall 
in  like  manner  at  his  option  be  substituted  for  such  period  in  re- 
spect of  the  benefits  and  obligations  of  arri'igements  and  practices  in 
force  during  the  test  period  in  regard  to  fuel,  materials,  and  supplies 


€7 

for  the  operation  of  the  property  described  in  paragraph  (a)  of 
section  2  hereof  and  of  any  additions,  betterments,  and  road  exten- 
sions thereto,  obtained  fi^om  any  mine,  oil  field,  or  other  source  of 
supply  owned  or  controlled  by  the  companies,  it  being  understood 
that  under  such  arrangements  or  practices,  if  availed* of  by  the 
Director  General,  he  shall,  to  the  extent  necessary  to  offset  any  in- 
crease in  the  standard  return  growing  out  of  the  furnishing  by  the 
Companies  or  their  subsidiaries,  during  the  test  period,  of  fuel,  ma- 
terials, and  supplies  under  an  arrangement  or  practice  at  less  than  the 
then  cost  or  the  then  market  value  thereof  for  railroad  purposes,  be 
charged  for  such  fuel,  materials,  and  supplies  a  price  expressed  in 
dollars  or  cents  per  unit  below  or  above  the  then  cost  or  the  then 
market  value  thereof  for  railroad  purposes  (as  the  practice  of  the 
Companies  may  have  been)  in  the  same  amount  that  the  prices 
charged  the  Companies  during  the  test  period  were  below  or  above 
the  then  cost  or  the  then  market  value  thereof  for  railroad  purposes ; 
and  at  the  request  of  the  Director  General  or  the  Companies  the 
prices  for  fuel  or  materials  supplied  between  December  31,  1917, 
and  the  execution  of  tliis  contract  shall  be  adjusted  on  the  foregoing 
basis :  Provided,  liowever^  That  a  source  of  supply  which  the  Com- 
panies had  acquired  to  safeguard  their  own  operations  shall  not  be 
depleted  or  reduced  for  use  on  other  transportation  systems,  except  in 
cases  of  emergency  to  be  determined  by  the  Director  General,  in 
which  event  the  quantity  so  used  on  other  transportation  systems 
shall  be  accounted  for  to  the  Companies  at  the  fair  value  thereof: 
AtuI  provided  further,  That  materials  and  supplies  secured  under 
contracts  which  the  Companies  had  made  for  their  own  operations 
shall,  so  far  as  practicable,  be  used  on  the  Companies'  property,  and 
that,  if  used  on  any  other  transportation  system,  materials  and  sup- 
plies of  like  character  shall  be  furnished  by  the  Director  General  for 
use  in  making  such  additions,  betterments,  and  road  extensions  as 
shall  be  chargeable  to  the  Companies,  and  shall  be  charged  at  cost 
under  such  contracts. 

(^)  The  Director  General  shall  pay,  or  save  the  Companies  harm- 
less from,  all  expenses  incident  to  or  growing  out  of  the  possession, 
operation,  and  use  of  the  property  taken  over  during  Federal  control, 
except  the  expenses  w^hich  under  this  agTeement  are  to  be  borne  by 
the  Companies.  He  shall  also  pay  or  save  the  Companies  harmless 
from  all  rents  called  in  the  monthly  reports  to  the  Commission 
equipment  rents  or  joint-facility  rents,  and  all  judgments  or  decrees 
that  may  be  recovered  or  issued  against,  and  all  fines  and  penalties 
that  may  be  imposed  upon,  the  Companies  by  reason  of  any  cause  of 
action  arising  out  of  Federal  control,  or  of  anything  done  or  omitted 
in  the  possession,  operation,  use,  or  control  of  the  Companies'  prop- 
erty during  Federal  control,  except  judgments  or  decrees  founded  on . 


68 

obligations  of  the  Companies  to  the  Director  General  or  the  United 
States. 

(j)  Except  as  otherwise  provided  in  this  agreement  the  Director 
General  shall  save  the  Companies  harndess  from  any  and  all  liability, 
loss,  or  expense  resulting  from  or  incident  to  any  claim  made  against 
the  Companies  gi'owing  out  of  anything  done  or  omitted  during  Fed- 
eral control  in  connection  with,  or  incident  to,  operation  or  existing 
contracts  relating  to  operation ;  and  shall  do  and  perform,  so  far  as 
is  requisite  under  Federal  control  for  the  protection  of  the  Com- 
panies, all  and  singular  the  things,  of  which  he  may  have  notice, 
necessary  and  appropriate  to  prevent,  because  of  Federal  control 
or  of  anything  done  or  omitted  thereunder,  the  forfeiture  or  loss  by 
the  Companies  of  any  of  their  property  rights,  ordinance  rights,  or 
franchises,  or  of  their  trackage,  lease,  terminal,  or  other  contracts 
involving  a  facility  of  operation ;  but  nothing  herein  contained  shall 
be  construed  to  require  the  Director  General  to  make  any  capital 
expenditure  necessary  to  preserve  a  franchise  or  ordinance  right  not 
heretofore  availed  of  by  the  Companies.  The  Director  General  shall 
also  save  the  Companies  harmless  from  any  and  all  claims  for  breach 
of  covenant  heretofore  entered  into  by  the  Companies  or  by  any 
predecessor  in  title  or  interest  in  any  mortgage  or  other  instrument 
in  respect  to  insurance  against  losses  by  fire. 

Nothing  in  this  or  in  the  preceding  paragraph  shall  be  construed 
to  be  an  assumption  by  the  Director  General  of,  or  to  make  him  liable 
on,  any  obligation  of  the  Companies  to  pay  a  debt  secured  by  a 
mortgage  or  any  rent  under  a  lease,  except  rents  Avhich  during  the 
test  period  were  called  in  the  monthly  reports  to  the  Commission 
equipment  rents  and  joint-facility  rents  and  rents  Avhich  under  the 
accomiting  rules  of  the  Commission  in  force  during  the  test  period 
were  classified  as  operating  expenses. 

The  Companies  shall,  during  Federal  control,  pay  the  rents  of  any 
property,  held  by  tliem  under  lease  or  contract,  described  in  i)ara- 
graph  {//)  of  section  2  hereof,  except  the  rents  Avhicli  (huing  the 
test  period  were,  under  the  rules  of  the  Connnission,  classified  as 
equipment  rents  or  joint  facility  rents,  and  rents  which  were  classi- 
fied as  operating  expenses;  which  excepted  rents  sluill  i)e  jiaid  by 
the  Director  General.  If  the  lease  of,  or  right  to  use.  any  ])roi)erty 
described  in  paragraph  ((/)  of  said  section  '2  expires  during  Federal 
control,  the  companies  shall,  if  possible,  and  if  requested  by  the 
Director  General,  renew  the  same:  the  rental,  liowever.  of  property 
in  the  excejited  classes  above  mentioned  shall  be  paid  by  the  Director 
(ienei-al.  Tlie  CoHii);iiiies  shall  pay  the  same  amount  of  rent  as  was 
l^ayable  at  the  l^eginning  of  P>deral  contrcd  for  other  proiun-ty,  the 
lease  of  or  right  to  use  Avhich  is  renewed  at  the  re<piest  of  the  Director 


69 

General,  but  any  increases  in  the  rental  of  siicli  other  properly  bhall 
be  paid  by  the  Director  ( Jeneral. 

(k)  In  carrying  out  the  provisions  of  paragraphs  {a),  {h),  (c), 
and  ((/)  of  this  section  and  the  provisions  of  section  0  hereof  the 
Director  General  shall  not  settle  any  claim  by  or  against  the  Com- 
panies against  the  objection  in  Avriting  of  the  president  or  of  any 
other  duly  authorized  ofliccr  of  the  Company.  The  conduct  of  all 
litigation  before  any  court  or  comndssion  arising  out  of  such  dis- 
puted claims,  or  out  of  operation  prior  to  Federal  control,  shall  bo 
in  charge  of  the  Director  General's  legal  force  and  the  expense 
thereof  shall  be  paid  by  the  Director  General;  but  the  Companies 
may,  at  their  own  expense,  employ  special  counsel  in  connection  with 
any  such  litigation. 

(Z)  Nothing  in  this  agreement  shall  be  construed  as  inconsistent 
with  the  provision  in  section  10  of  the  Federal  control  act  that  no 
process,  mesne  or  final,  shall  be  levied  against  any  property  under 
Federal  control,  nor  as  a  waiver  by  the  United  States  of  any  claim 
that  might  otherwise  be  made  by  it  that  the  rights  of  any  State  or 
subdivision  thereof  or  of  any  individual  or  corporation  have  been 
abrogated  or  suspended  by  the  taking  over  of  the  Companies'  prop- 
erty or  by  Federal  control. 

(m)  The  Companies  shall  have  the  right  at  all  reasonable  times 
to  inspect  the  books  and  accounts  kept  by  the  Director  General  relat- 
ing to  their  property,  or  to  the  operation  thereof,  and  the  Director 
General  shall  during  Federal  control  furnish  the  Companies  Avith 
copies  of  the  operating  reports  relating  to  their  property,  and  as  soon 
as  practicable  after  the  end  of  each  fiscal  year  shall  furnish  to  the 
Companies  a  complete  list  of  their  equipment  as  of  the  end  of  such 
fiscal  3^ear. 

Section  5. — Upkekp. 

Sec.  5.  (a)  During  the  period  of  Federal  control  the  Director 
General  shall,  annually,  as  nearly  as  practicable,  expend  and  charge 
to  railway  operating  expenses,  either  in  payments  for  labor  and 
material  or  by  payments  into  funds,  such  sums  for  the  maintenance, 
repair,  renewal,  retirement,  and  depreciation  of  the  property  de- 
scribed in  paragraph  (a)  of  section  2  Jiereof  as  may  be  requisite  in 
order  that  such  property  may  be  returned  to  the  Companies  at  the 
end  of  Federal  control  in  substantially  as  good  repair  and  in  sub- 
stantially as  complete  equipment  as  it  Avas  on  January  1.  1918: 
Provided,  however,  That  the  annual  expenditure  and  charges  for  such 
purposes  during  the  period  of  Federal  control  on  such  property  and 
the  fair  distribution  thereof  over  the  same,  or  the  payment  into 
funds  of  an  auiount  equal  in  the  aggregate  (subject  to  the  adjust- 
ments provided  in  paragraph  (e)  and  to  the  provisions  of  paragraph 


70 

(e)  of  this  section)  to  the  average  annual  expenditure  and  charges 
for  such  purposes  inchided  under  the  accounting  rules  of  the  Com- 
mission in  railway  operating  expenses  during  the  test  period,  less 
the  cost  of  fire  insurance  included  therein,  shall  be  taken  as  a  full 
compliance  with  the  foregoing  convenant. 

(b)  The  Director  General  may  expend  such  sums,  if  any,  in  addi- 
tion to  those  expended  and  charged  under  paragraph  (a)  of  this 
section  (subject  to  the  adjustments  provided  in  paragraph  (c)  of 
this  section)  as  may  be  requisite  for  the  safe  operation  of  the  property 
described  in  paragTaph  (a)  of  section  2  hereof,  assuming  a  use  sim- 
ilar to  the  use  during  the  test  period  and  not  substantially  en,hanc- 
ing  the  cost  of  maintenance  over  the  normal  standard  of  maintenance 
of  railroads  of  like  character  and  business  during  said  period;  and 
the  amount,  if  any,  of  such  excess  expenditures  during  Federal  con- 
trol shall  be  made  good  by  the  Companies  as  provided  in  paragraph 
(&)  of  section  7  hereof. 

(c)  In  comparing  the  amounts  expended  and  charged  under  the 
provisions  of  paragraphs  (a)  and  (&)  of  this  section  with  the 
amounts  expended  and  charged  during  the  test  period,  due  allow- 
ance shall  be  made  for  any  difference  that  may  exist  between  the 
cost  of  labor  and  materials  and  between  the  amount  of  property  taken 
over  and  the  average  for  the  test  period,  and,  as  to  paragraph  (a), 
for  any  difference  in  use  between  that  of  the  test  period  and  during 
Federal  control  which  in  the  opinion  of  the  Conunission  is  substan- 
tial enough  to  be  considered,  so  that  the  result  shall  be,  as  nearly 
as  practicable,  the  same  relative  amount,  character,  and  durability 
of  physical  reparation. 

(d)  At  the  request  of  the  Director  General  or  the  Company  there 
shall  be  an  accounting  of  tlie  amounts  due  by  or  to  any  of  the  parties 
imder  paragraphs  (a)  and  (5)  of  this  section  at  the  end  of  each 
year  of  Federal  control  and  at  the  end  of  Federal  control. 

(e)  If  during  Federal  control  any  of  the  property  described  in 
paragraph  (a)  of  section  2  hereof  or  any  replacement  thereof  or  addi- 
tion thereto  or  betterment  or  extension  thereof  is  destroyed  or  dam- 
aged otherwise  than  by  fire  or  public  enemies,  and  is  not  restored  or 
replaced  by  the  Director  General,  he  shall  reimburse  the  Companies 
the  value  of  the  properly  destroyed  or  the  amount  of  the  damage  at 
the  time  of  the  loss,  and  the  cost  of  restoration  or  replacement,  or  said 
value  or  damage,  as  the  case  may  be,  shall  be  charged  to  annual  rail- 
way operating  expenses;  it  being  understood  that  extraordinary  losses 
cavised  by  floods,  explosions,  train  wrecks  or  accident  are  included  in 
the  matters  covered  by  this  paragraph,  while  ordinary  losses  due  to 
such  causes  are  included  in  the  matters  covered  by  paragraph  (a) 
of  this  section :  Proi^Jded,  ho^vever,  That  if  the  Commission  on  appli- 
cation of  the  Director  General  or  the  Company  and  after  giving  due 


71 

consideration  to  the  practice  of  the  Companies  during  the  test  period 
in  respect  to  such  matters  and  to  any  other  pertinent  facts  and  cir- 
cumstances, determines  that  it  is  just  and  reasonable  that  the  said  cost 
or  vakie  shall  be  apportioned  or  extended  over  a  period  of  more  than 
one  year,  this  shall  be  done,  and  so  much  of  said  cost  or  value  as  may 
be  apportioned  by  the  Commission  over  the  period  subsequent  to 
Federal  control,  shall  be  charged  to  the  Companies  in  the  final 
accounting  at  the  end  of  Federal  control  and  shall  be  paid  by  them. 

If,  during  Federal  control,  any  of  the  property  described  in  para- 
graph (a)  of  section  2  hereof  or  any  replacement  thereof  or  addition 
thereto  or  betterment  or  extension  thereof  is  destro3"ed  or  damaged 
by  fire,  and  is  not  restored  or  replaced  by  the  Director  General,  he 
shall  reimburse  the  Companies  the  value  of  the  property  destroyed 
or  the  amount  of  the  damage  at  the  time  of  the  fire ;  and  the  cost  of 
restoration  or  replacement  or  said  value  or  damage,  as  the  case  may 
be,  shall  be  charged  to  annual  railway  operating  expenses,  but  the 
same  shall  not  be  considered  a  charge  to  such  expenses  for  the  pur- 
poses specified  in  paragraph  (a)  of  this  section. 

In  case  of  any  such  loss  or  damage  by  fire,  the  Director  General 
shall,  if  given  written  notice  of  the  requirements  of  any  mortgages, 
equipment  lease,  or  trust  on  the  property  so  destroyed  or  damaged, 
make  such  restoration  or  replacement,  or  pay  such  value  or  damage, 
in  such  way  as  to  meet  the  requirements  of  such  mortgage,  equip- 
ment lease,  or  trust  in  the  same  manner  as  would  have  been  proper 
in  applying  the  proceeds  of  insurance  on  such  property  if  it  had  been 
insured  by  the  Companies  against  loss  or  damage  by  fire  in  accordance 
with  the  terms  of  such  instruments  of  lien ;  and  a  compliance  with  the 
written  request  of  the  Company  in  respect  thereof  shall  be  a  full 
acquittance  of  any  obligation  of  the  Director  General  in  the  premises. 

The  foregoing  parts  of  this  paragraph  are  subject  to  the  proviso 
that  in  case  of  loss  or  damage  any  additions  and  betterments  made 
in  connection  with  or  as  a  part  of  the  restoration  or  replacement  of 
property  damaged  or  destroyed  and  chargeable  under  the  accounting 
rules  of  the  Commission  in  force  December  31,  1917,  to  investment  in 
road  and  equipment,  shall  be  charged  to  and  paid  b}'  the  Companies. 

The  Director  General  shall  not  be  liable  to  the  Companies  for  any 
loss  or  damage  due  to  the  acts  of  public  enemies. 

(/)  If  any  additions,  betterments,  or  road  extensions  are  made  to 
the  property  taken  over  or  any  equipment  is  added  at  the  expense 
of  the  Companies  and  with  the  approval  or  by  order  of  the  Director 
General  during  Federal  control,  he  shall  expend  and  charge  to  rail- 
way operating  expenses  such  sums  either  in  payments  for  labor  and 
materials  or  by  payments  into  funds,  as  may  be  requisite  for  the 
proper  maintenance,  repair,  renewal,  retirement,  and  depreciation 
of  such  property  until  the  end  of  Federal  control. 


72 

{(/)  The  Companies  shall  have  the  ridit  to  inspect  their  property 
at  all  reasonable  times  during  Federal  control,  and  the  Director 
General  shall  provide  reasonable  facilities  for  such  inspection. 

(h)  If  any  question  shall  arise,  either  during  or  at  the  end  of 
Federal  control,  as  to  vrhether  the  covenants  or  provisions  in  this 
section  contained  are  being  or  have  been  observed,  the  matter  in 
dispute  shall,  on  the  application  of  the  Director  General  or  the 
Company,  be  referred  to  the  Commission,  which,  after  hearing,  shall 
make  such  findings  and  order  as  justice  and  right  may  require,  which 
shall  be  final  as  to  the  questions  submitted  and  shall  be  binding  on 
and  observed  by  the  parties  hereto,  except  that  the  Director  General 
or  the  Company  may  take  any  question  of  law  to  the  courts,  if  he 
or  it  so  desires. 

Section  G. — Taxes. 

Sec.  6.  {a)  All  taxes  assessed  under  Federal  or  any  other  govern- 
mental authority  for  the  period  prior  to  January  1,  1918,  including 
a  proportionate  part  of  any  such  tax  assessed  after  December  31, 
1917,  for  a  period  which  includes  any  part  of  1917  or  preceding  years 
and  unpaid  on  that  date,  all  taxes  commonly  called  war  taxes  which 
have  been  or  may  be  assessed  against  the  Companies  under  the  act 
of  Congress  entitled  "  An  act  to  provide  revenue  to  defray  war  ex- 
penses, and  for  other  purposes,"  approved  October  3,  1917,  or  under 
any  act  in  addition  thereto  or  in  amendment  thereof,  and  all  taxes 
which  have  been  or  may  be  assessed  on  property  under  construction, 
and  all  assessments  which  have  been  or  may  be  made  for  public  im- 
provements, chargeable  under  the  accounting  rules  of  the  Commis- 
sion in  force  December  31,  1917,  to  investment  in  road  and  equip- 
ment, shall  be  paid  by  the  Companies;  but  upon  the  amount  thus 
chargeable  to  investment  interest  shall  be  paid  to  the  Company  dur- 
ing Federal  control  at  the  rate  provided  in  paragraph  (d)  of  section 
7  hereof.  Taxes  assessed  during  construction  on  additions,  better- 
ments, and  road  extensions  made  by  the  Companies  with  the  approval 
or  by  order  of  the  Director  General  during  Federal  control  shall  be 
considered  a  part  of  the  cost  of  such  additions,  betterments,  and  ex- 
tensions, and  shall,  under  the  provisions  of  paragraph  (d)  of  section 
7  hereof,  bear  interest  as  a  part  of  such  cost  from  the  date  of  the  com- 
pletion of  such  additions,  betterments,  or  extensions.  Assessments  for 
public  improvements  which  do  not  become  a  part  of  the  property 
taken  over  shall  bear  interest  from  the  date  of  the  payment  of  such 
assessment. 

(Jj)  If  any  tax  or  assessment  which  under  this  agreement  is  to  be 
paid  by  the  Companies  is  not  paid  by  them  Avhen  due,  the  same  may 
be  paid  by  the  Director  General  and  deducted  from  the  next  install- 
ment of  compensation  due  under  section  7  hereof.    If  any  taxes  prop- 


73 

erly  chargeable  to  the  Director  General  have  l>een  or  shall  l)e  paid  by 
the  Companies,  they  shall  be  duly  reimbursed  therefor. 

(e)  The  Director  General  shall  either  pay  out  of  revenues  derived 
from  railway  operation  during  the  period  of  Federal  control  or  shall 
save  the  Companies  harmless  from  all  taxes  lawfully  assessed  under 
Federal  or  any  other  governmental  authority  for  any  part  of  said 
period  on  the  property  under  such  control,  or  on  the  right  to  operate 
as  a  carrier,  or  on  the  revenues  derived  from  operation,  and  all  other 
taxes  which  under  the  accounting  rules  of  the  Commission  in  force 
December  31. 1917,  are  properly  chargeable  to  "  railway  tax  accruals," 
except  the  taxes  and  assessments  for  which  provision  is  made  in  para- 
graph (a)  of  this  section.  The  Director  General  shall  pay  or  save 
the  Companies  harmless  from  the  expense  of  all  suits  respecting  the 
classes  of  taxes  payable  by  him  under  this  agreement. 

(d)  If  any  such  tax  is  for  a  period  which  began  before  January  1, 
1918,  or  continues  beyond  the  period  of  Federal  control,  such  portion 
of  such  tax  as  may  be  apportionable  to  the  period  of  Federal  control 
shall  be  paid  by  the  Director  General,  and  the  remainder  shall  be 
paid  by  the  Companies. 

(e)  Whenever  a  period  for  which  a  tax  is  assessed  can  not  be  defi- 
nitely determined,  so  much  of  such  tax  as  is  payable  in  any  calendar 
year  shall  be  treated  as  assessed  for  such  year. 

SeCTIOX     7. COMPEXSATIOX. 

Sec.  7.  (a)  The  annual  compensation  guaranteed  to  the  Companies 

under  section  1  of  the  Federal  control  act  shall  be  the  sum  of ^^ 

dollars  and cents  ($ )  during  each  year  and  pro 

rata  for  each  fractional  part  of  a  j^ear  of  Federal  control,  subject, 
however,  to  any  increase  or  decrease  in  the  standard  return  hereafter 
made  by  the  Commission  as  provided  in  paragraph  (d)  of  the  pre- 
amble of  this  agTeement. 

Compensation  paid  by  the  Director  General  under  this  agree- 
ment, including  that  provided  for  in  paragraph   (d) of 

this  section,  or  arising  from  any  other  source,  shall  be  paid  to  the 
Company ;  and  the  Company,  after  retaining  such  part  thereof  as  it 
may  be  entitled  to  retain,  shall  distribute  the  remainder  to  the  par- 
ties entitled  thereto. 

(h)  The  said  compensation  shall  be  paid  to  the  Company  quar- 
terly in  equal  installments  on  the  last  days  of  March,  June.  September, 
and  December  of  each  year  for  the  quarter  ending  therewith,  except 
that  the  first  three  installments  shall  be  due  as  of  March  31,  1918, 
June  30,  1918,  and  September  30.  1918,  respectively,  but  shall  be  paid 
upon  the  execution  of  this  agreement;  but  from  each  installment 
there  may  be  deducted  any  amount  then  due  by  the  Companies  under 
paragraphs  (a)  and  (d)  of  section  4  hereof,  under  paragraph  (b)  of 


74 

section  5  hereof,  and  under  paragraph  (h)  of  section  6  hereof,  and 
all  amounts  required  to  reimburse  the  United  States  for  the  cost  of 
additions  and  betterments  made  to  the  property  of  the  Companies 
not  justly  chargeable  to  the  United  States,  unless  such  matters  are 
financed  or  otherwise  taken  care  of  by  the  Companies  to  the  satisfac- 
tion of  the  Director  General,  and  the  Director  General  may  appor- 
tion any   such   amounts  to  two  or  more   subsequent  installments: 
Provided,   however,  That  said   power  to   deduct   amounts   due   or 
accruing  under  paragraph  (&)  of  section  5  hereof  and  the  cost  of  ad- 
ditions and  betterments  not  justly  chargeable  to  the  United  States 
shall  not  be  so  exercised  as  to  prevent  the  Companies  from  paying 
out  the  sums  reasonably  required  to  support  their  corporate  organi- 
zations, to  keep  up  sinking  funds  for  the  Companies'  debts  required 
by  contracts  in  force  December  31,  1917,  to  pay  their  taxes,  to  pay 
rents  and  other  amounts  (not  chargeable  to  capital  account)  prop- 
erly payable  by  the  Companies  for  leased  or  operated  roads  and 
properties,   to   pay   interest   which   has  heretofore   been   regularly 
paid  by  the  Companies,  and  interest  on  loans  issued  during  Federal 
control  and  approved  by  the  Director  General,  nor  shall  such  de- 
duction be  made  in  respect  of  additions  and  betterments  which  are 
for  war  purposes  and  not  for  the  normal  development  of  the  Com- 
panies, nor  in  respect  of  road  extensions,  nor  in  respect  of  amounts 
due  under  paragraphs  (a)  and  {d)  of  section  4  hereof,  in  cases  where 
the  current  assets,  including  materials  and  supplies,  of  the  Com- 
panies taken  over  by  the  Director  General  under  the  provisions  of 
this  agreement  clearly  exceed  the  current  liabilities  of  the  Companies 
paid  or  assumed  by  the  Director  General  under  said  section.     In 
the  event  of  a  difference  as  to  the  fact  whether  additions  and  better- 
ments are  for  war  purposes  and  not  for  the  normal  development  of 
the  Companies,  or  as  to  whether  an  addition  is  a  road  extension,  the 
question  may,  on  application  of  the  Director  General  or  the  Com- 
pany, be  referred  to  and  determined  by  the  Commission. 

The  poAver  provided  in  this  paragraph  to  deduct  the  amount  due 
by  the  Companies  for  the  cost  of  additions  and  betterments  not  justly 
chargeable  to  the  United  States  is  fuiiher  declared  to  be  an  emer- 
gency power,  to  be  used  by  the  Director  General  only  when  he  finds 
that  no  otlier  reasonable  means  is  provided  by  the  Companies  to  re- 
imburse the  United  States,  and,  as  contemplated  by  the  President's 
proclamation  and  by  the  Federal  control  act,  it  will  be  the  policy  of 
the  Director  General  to  so  use  such  power  of  deduction  as  not  to  inter- 
rupt unnecessarily  the  regular  payment  of  dividends  as  made  by  the 
Companies  during  the  test  period. 

Overdue  installments  of  compensation,  or  balances  thereof,  pro- 
vided for  in  this  section  shall  bear  interest  from  maturity  at  the  rate 


75 

of  five  per  cent  per  annum,  except  that  if  the  Director  General  sliall, 
prior  to  the  execution  of  this  contract,  have  loaned  the  Companies 
any  money,  the  installments  of  compensation  overdue  at  the  date  of 
the  execution  hereof  shall  bear  interest  from  maturit}'  at  the  same 
rate  as  that  charged  to  the  Companies  on  such  loans. 

(c)  During  Federal  control  the  Companies  shall  not,  without  the 
prior  approval  of  the  Director  General,  issue  any  bonds,  notes,  equip- 
ment trust  certificates,  stock,  or  other  securities,  or  enter  into  any  con- 
tracts (except  contracts  in  respect  of  corporate  affairs  and  property 
not  taken  under  Federal  control),  or  agree  to  pay  interest  on  their 
debts  at  a  higher  rate,  or  for  rent  of  leased  roads  and  properties  a 
larger  amount,  than  the  rates  and  amounts  payable  as  of,  or  required 
by  contracts  in  force  on,  December  31,  1917.  The  Companies  may, 
however,  procure  the  authentication  and  delivery  to  them  under  any 
mortgage  or  trust  deed  or  agreement  in  force  December  31,  1917,  of 
'bonds  or  notes  issuable  thereunder  in  respect  of  additions,  better- 
ments, extensions,  and  equipment,  or  for  refunding  purposes. 

(d)  Upon  the  cost  of  additions  and  betterments,  less  retirements 
in  connection  therewith,  and  upon  the  cost  of  road  extensions,  made 
to  the  property  of  the  Companies  during  Federal  control,  the  Di- 
rector General  shall,  from  the  completion  of  the  work,  pay  the  Com- 
pany a  reasonable  rate  of  interest,  to  be  fixed  by  him  on  each  occa- 
sion. In  fixing  such  rate  or  rates  he  may  take  into  account  not  merely 
the  value  of  money  but  all  pertinent  facts  and  circumstances,  whether 
the  money  used  was  derived  from  loans  or  otherwise,  provided  that 
to  the  extent  that  the  money  is  advanced  by  the  Director  General  or 
is  obtained  by  the  Companies  from  loans  or  from  the  proceeds  of 
securities  the  rate  or  rates  shall  be  the  same  as  that  charged  by  the 
Director  General  for  loans  to  the  Companies  or  to  other  companies 
of  similar  credit. 

(e)  From  the  compensation  so  received  or  from  other  income,  if 
adequate  for  the  purpose,  the  Companies  shall  make  all  payments  of 
interest,  rents  (other  than  the  equipment  rents,  joint  facility  rents, 
and  rents  classified  as  operating  expenses  mentioned  in  paragraph 
(j)  of  section  4  hereof),  and  other  sums  necessary  to  prevent  a  de- 
fault under  any  mortgage  or  lease  of  any  of  the  property  described 
in  paragraph  (a)  of  section  2  hereof;  and  if  at  any  time  during  Fed- 
eral control  the  Companies,  by  virtue  of  any  change  in  the  right  of 
possession  (subject  to  the  rights  of  the  United  States)  to  any  of  said 
property  or  otherwise,  shall  no  longer  be  entitled  as  between  them- 
selves and  any  other  person  or  corporation,  not  a  part}'  to  this  agree- 
ment, to  receive  the  entire  compensation  herein  provided,  such  com- 
pensation shall  be  apportioned  and  paid  as  betAveen  those  entitled 
thereto,  as  justice  and  right  may  require. 


76 

Section  8. — Claims  for  Losses  on  Additions,  Etc. 

Sec.  8. .(«)  Prompt  notice  in  writing,  except  as  provided  in  para- 
graph (d)  of  this  section,  shall  be  given  the  Companies  of  the  mak- 
ing or  ordering  of  &nY  additions,  betterments,  or  road  extensions,  in- 
cluding terminals,  motive  power,  cars,  or  other  equipment  to  or  for 
the  property  of  the  Companies  costing  more  than  one  thousand  dol- 
lars, with  an  estimate  of  the  cost  thereof.  Such  notice  shall  be  given 
before  the  beginning  of  the  Avork  or  the  acquisition  of  the  property 
whenever  in  the  judgment  of  the  Director  General  it  is  practicable  to 
do  so.  Within  a  reasonable  time  after  the  completion  of  the  work 
or  the  acquisition  of  the  property,  a  written  statement  of  the  final 
cost  thereof  shall  be  given  the  Companies.  There  shall  be  furnished 
the  Companies,  as  soon  as  practicable  after  the  end  of  each  month,  a 
written  statement  of  all  expenditures  estimated  to  cost  one  thousand 
dollars  or  less  chargeable  to  investment  in  road  and  equipment  made 
during  the  month,  with  a  brief  description  of  the  work  done  or  of 
the  property  acquired;  and  such  statement  shall  constitute  all  the 
notice  of  additions  and  betterments  costing  one  thousand  dollars  or 
less  required  by  (h)  and  {c)  of  this  section.  The  notices  provided 
in  this  paragraph  may  be  given  to  the  president  of  the  Company 
unless  the  Company  designates  some  other  officer  to  receive  the  same, 
in  which  event  the  notice  shall  be  given  to  such  other  officer. 

(b)  Any  claim  of  the  Companies  for  loss  accruing  to  them  by 
reason  of  expenditures  for  additions  and  betterments  made  to  their 
property  during  Federal  control  in  connection  with  or  as  a  part  of 
the  work  of  maintaining,  repairing,  and  renewing  the  Companies' 
property  and  chargeable  under  the  accounting  rules  of  the  Commis- 
sion in  force  December  31.  1917.  to  investment  in  road  and  equipment, 
except  such  expenditures  as  are  incurred  in  connection  with  the  re- 
placement of  buildings  and  structures  in  new  locations,  may  be  de- 
termined by  agreement  between  the  Director  General  and  the  Com- 
panies, or,  failing  such  agreement  as  to  the  fact  or  amount  of  such 
loss,  the  que^-tions  at  issue  may,  upon  the  application  of  the  Director 
General  or  the  Companies  at  any  time  after  the  filing  of  the  statement 
of  claim  hereinafter  referred  to,  be  ascertained  in  the  manner  pro- 
vided in.  section  3  of  the  Federal  control  act:  Proindcd,  hoirever. 
That  no  loss  shall  be  claimed  by  the  Companies  and  no  money  shall  be 
due  them  in  respect  of  such  additions  and  betterments  upon  the 
ground  that  the  actual  cost  thereof  at  the  time  of  construction  was 
greater  than  under  other  market  and  commercial  conditions;  and 
for  the  purpose  of  determining  such  controversy  the  amount  paid 
for  any  addition  or  betterment  shall  be  deemed  the  fair  and  reason- 
able cost  thereof  and  shall  Ije  taken  as  the  basis  for  such  determina- 


77 

tion ;  iior  unless  the  Companies,  within  sixty  days  of  notice  to  them 
that  the  worli:  will  be  done,  shall  give  the  Director  General  notice  of 
objection  thereto  and  shall  file  with  the  Director  General  a  statement 
of  claim  within  ninety  days  after  notice  of  the  completion  of  the 
work. 

(c)  Any  claim  of  the  Companies  for  loss  accruing  to  them  by- 
reason  of  any  additions  and  betterments  which  are  not  made  in  con- 
nection with  or  as  a  part  of  the  work  of  maintaining,  repairing,  and 
reneAving  the  Companies'  property,  or  accruing  to  them  in  connec- 
tion with  maintenance  in  the  replacement  of  buildings  and  structures 
in  new  locations,  or  by  reason  of  road  extensions,  terminals,  motive 
power,  cars,  or  other  equipment  made  to  or  provided  for  the  prop- 
erty of  the  Companies  during  Federal  control,  may  be  determined 
by  agreement  between  the  Director  General  and  the  Companies,  or 
failing  such  agreement  as  to  the  fact  or  amount  of  such  loss,  may, 
by  proceedings  instituted  not  later  than  six  months  after  the  end  ol 
Fecleral  control,  be  ascertained  in  the  manner  provided  in  section  3 
of  the  Federal  control  act:  Provided,  however,  That  no  loss  shall  be 
claimed  by  the  Companies  and  no  money  shall  be  due  to  them  in 
respect  of  such  additions,  betterments,  road  extensions,  tenninals, 
motive  power,  cars,  or  other  equipment  mentioned  in  this  para- 
graph upon  the  ground  that  the  actual  cost  thereof  at  the  time 
of  construction  or  acquisition  was  greater  than  under  other 
market  and  conuuercial  conditions;  and  for  the  purpose  of 
determining  such  controversy  the  amount  paid  for  any  additions, 
betterments,  road  extensions,  terminals,  motive  power,  cars,  or 
other  equipment  shall  be  deemed  the  fair  and  reasonable 
cost  thereof  and  shall  be  taken  as  the  basis  for  such  determina- 
tion; nor  unless  within  sixty  days  after  notice  to  the  Com- 
pany of  such  construction  or  acquisition  written  notice  is  given  to 
the  Director  General  by  the  Company  that  a  loss  will  be  claimed  in 
respect  thereof.  With  and  as  a  part  of  such  notice  the  Company 
shall  state  the  objections  to  such  construction  or  acquisiticm  as  far 
as  reasonably  practicable  at  the  time.  Nothing  in  this  agreement 
shall  be  construed  as  barring  the  United  States  from  contending  that 
no  loss  within  the  meaning  of  the  Federal  control  act  accrued  to  the 
Companies  by  reason  of  any  additions,  betterments,  or  road  extensions 
made  during  Federal  control  by  order  or  approval  of  the  Director 
General,  if  it  is  made  to  appear  that  the  Companies  tliemselves  but 
for  Federal  control  should  in  the  exercise  of  sound  judgment  have 
made  such  addition,  betterment,  or  road  extension. 

{d)  Where  additions,  betterments,  or  road  extensions  or  terminals, 
u)otive  poAver,  cars,  or  other  equipment  have  been  made  to  or  pro- 
vided for  the  property  of  the  Companies  during  Federal  control  but 


78 

prior  to  tlie  execution  of  this  agreement,  the  Director  General  shall 
not  be  required  to  give  the  notice  thereof  provided  for  in  paragraph 
[a)  of  this  section  and  notice  by  the  Company  of  any  claim  of  loss 
in  respect  thereto  may  be  given  the  Director  General  within  ninety 
days  after  the  execution  hereof ;  and  such  claims  shall  thereafter  be 
proceeded  with  in  the  manner  provided  in  paragi^aph  (h)  or  para- 
graph (c)  of  this  section,  as  the  case  may  be. 

(e)  The  Director  General  shall  reimburse  the  Companies  for  the 
amount  of  loss  ascertained  under  this  section  with  a  proper  adjust- 
ment of  interest  thereon. 

(/)  The  Director  General  shall  not  acquire  any  motive  power, 
cars,  or  other  equipment  at  the  expense,  or  on  the  credit,  of  the  Com- 
panies in  excess  of  what  in  his  judgment  is  necessary,  in  addition  to 
their  then  existing  equipment,  to  provide  for  the  traffic  requirements 
of  their  own  systems  of  transportation;  but  this  provision  shall  not 
prevent  the  Director  General,  after  the  acquisition  of  such  equip- 
ment, from  using  the  same,  or  any  part  thereof,  on  the  line  of  any 
other  transportation  system  operated  by  him. 

Section  9. — Final  Accounthstg. 

Sec.  9.  (a)  At  the  end  of  Federal  control  all  the  property  de- 
scribed in  paragraph  (a)  of  section  2  hereof  shall  be  returned  to  the 
Companies,  together  with  all  repairs,  renewals,  additions,  better- 
ments, replacements,  and  road  extensions  thereto  which  have  been 
made  during  Federal  control,  except  as  any  part  thereof  may  have 
been  destroyed  or  retired  and  not  replaced,  in  which  case  the  pro- 
visions of  section  5  hereof  shall  govern  and  except  that  the  Director 
General  shall  not  be  obliged  to  restore  or  replace  property  destroyed 
or  damaged  by  the  acts  of  public  enemies. 

(5)  At  the  end  of  Federal  control  the  Director  General  shall  re- 
turn to  the  Companies  all  uncollected  accounts  received  by  him  from 
them  and  also  materials  and  supplies  equal  in  quantity,  quality,  and 
relative  usefulness  to  that  of  the  materials  and  supplies  which  he 
received,  and  to  the  extent  that  the  Director  General  does  not  return 
such  materials  and  supplies  he  shall  account  for  the  same  at  prices 
prevailing  at  the  end  of  Federal  control.  To  the  extent  that  the 
Companies  receive  materials  and  supplies  in  excess  of  those  delivered 
by  them  to  the  Director  General  they  shall  account  for  the  same  at 
the  prices  prevailing  at  the  end  of  Federal  control  and  the  balance 
shall  be  adjusted  in  cash. 

(c)  The  total  amount  of  the  account  "  Net  balance  receivable  from 
agents  and  conductors  "  at  the  end  of  Federal  control  may  be  turned 
over  by  the  Director  General  to  the  Company.  He  may  also  turn  over 
all  assets  which  have  accrued  out  of  operation;  and  the  Company 


79 

shall,  to  the  extent  of  the  cash  received  or  realized  from  such  assets, 
pay  and  charge  to  the  Director  General  all  expenses  arising  out  of 
railway  operations  during  Federal  control,  including  reparation 
and  other  claims,  and  may,  unless  objection  is  made  by  the  Director 
General,  pay  and  charge  to  him  any  such  expenses,  including  repara- 
tion and  other  claims,  in  excess  of  the  cash  so  received  or  realized.  On 
the  first  day  of  the  third  month  following  the  termination  of  Federal 
control  an  accounting  between  the  parties  shall  be  had,  and  so  on 
the  fii-st  of  each  third  month  thereafter.  Any  balance  found  due 
either  party  shall  be  payable  as  of  the  date  on  which  the  account  is 
stated  and  shall  bear  interest  until  paid. 

{(l)  At  the  end  of  Federal  control  there  shall  be  paid  to  the  Com- 
panies any  balance  then  remaining  mipaid  of  the  cash  received  from 
them  at  the  beginning  of  or  during  Federal  control,  together  wdth 
any  unpaid  interest  which  may  have  accrued  upon  the  same.  There 
shall  also  be  paid  to  the  Companies  any  funds  created  under  the  pro- 
visions of  this  agreement  except  to  the  extent  that  such  funds  may 
have  been  properly  used  under  this  agreement. 

{e)  Wherever  under  any  provision  of  this  section  there  is  to  be  an 
adjustment  of  interest,  it  shall  be  at  the  rate  of  five  per  cent  per  an- 
num, unless  the  parties  shall  in  any  case  agree  on  a  different  rate. 

(/)  After  Federal  control  no  claim  by  or  against  the  Director 
General  shall  be  settled  by  the  Companies  against  the  written  objec- 
tion of  the  Director  General  or  the  Attorney  General  of  the  United 
States.  The  conduct  of  all  litigation  before  any  court  or  commis- 
sion arising  out  of  such  disputed  claims  or  out  of  operations  during 
Federal  control  shall  be  in  charge  of  the  Companies'  legal  force  and 
the  expense  thereof  shall  be  paid  by  the  Companies ;  but  the  Director 
General  or  the  Attorney  General  may,  at  the  expense  of  the  United 
States,  employ  special  counsel  in  connecticm  with  any  such  litigation. 

Execution. 


[Short  Lino  Form.] 

AGREEMENT  BETWEEN  THE  DIRECTOR  GENERAL  OF  RAILROADS 
AND  THE COMPANY. 

Agreement. 

This  AgTccment  made  this day  of ,  1918, 

between  William  G.  McAdoo,  Director  General  of  Kailroads  (here- 
inafter called  the  Director  General),  acting  on  behalf  of  the  United 
States  and  the  President,  under  the  powers  conferred  on  him  by 
ihe   proclamation   of   the   President,   hereinafter   referred   to,   and 

the  

Company,   a   corporation   duly   organized   under   the   laws   of   the 

State (s)    of  

(hereinafter  called  the  Company)  : 

Witnesseth  that — 

(a)  "Whereas  by  a  Proclamation  dated  December  26,  1917,  the 
President,  acting  under  the  powers  conferred  on  him  by  the  Consti- 
tution and  Laws  of  the  United  States,  by  virtue  of  the  joint  resolu- 
tions of  the  Senate  and  House  of  Kepresentatives  bearing  date  April 
6  and  December  7,  1917,  respectively,  and  particularly  by  virtue  of 
Section  1  of  the  Act  of  Congress  ai)proved  August  29,  1916,  entitled 
"  An  Act  making  appropriations  for  the  support  of  the  Army  for 
the  fiscal  year  ending  June  30,  1917,  and  for  other  purposes,"  took 
possession  of  and  assumed  control  at  12  o'clock  noon  on  December 
28,  1917.  for  war  purposes  of  certain  railroads  constituting  a  system 
or  systeuis  of  transportation  (not  including  the  railroad  of  the  Com- 
pany described  herein),  and  appointed  William  G.  McAdoo  Director 
General  of  Railroads ;  and 

(h)  AViiEREAs  the  Act  of  Congi-ess  called  herein  the  Federal  Con- 
trol Act,  approved  by  the  President  March  21,  1918,  brought  under 
Federal  control  the  railroad  hereinafter  described  under  the  follow- 
ing provision.'"  That  every  railroad  not  owned,  controlled,  or  operated 
by  another  carrier  company,  and  which  has  heretofore  competed  for 
traffic  with  a  railroad  or  railroads  of  which  the  President  has  taken 
the  i:>ossession,  use.  and  control,  or  which  connects  Avith  such  rail- 
roads and  is  engaged  as  a  common  carrier  in  general  transportation, 
shall  be  held  and  considered  as  within  'Federal  control,'  as  herein 

(80) 


81 

defined,  and  necessary  for  the  prosecution  of  the  Avar,  and  shall  be 
entitled  to  the  benefits  of  all  the  provisions  of  this  Act*';  and 

((?)  Whereas  by  Proclamation,  dated  March  29,  1918,  the  Presi- 
dent, pursuant  to  said  Federal  Control  Act  authorized  the  said  "Wil- 
liam G.  McAdoo,  as  Director  General,  either  personally  or  through 
such  divisions,  agencies,  or  persons  as  he  may  appoint,  and  in  his 
own  name  or  in  the  name  of  such  divisions,  agencies,  or  persons,  or 
in  the  name  of  the  President,  to  make  with  the  carriers,  or  any  of 
them,  such  agreements  as  may  be  necessary  and  expedient  respecting 
any  matter  concerning  which  it  may  be  necessary  or  expedient  to 
deal  and  to  make  any  and  all  contracts,  agreements  or  obligations 
necessary  or  expedient  in  connection  with  the  Federal  control  of  such 
railroads  as  fully  in  all  respects  as  the  President  might  do : 

Xow,  THEREFORE,  the  parties  hereto,  each  in  consideration  of  the 
agreements  of  the  other  herein  contained,  do  hereby  covenant  and 
agree  to  and  with  each  other  as  follows : 

Sectiox  1.  (a)  This  agreement  shall  be  binding  upon  the  United 
States,  the  Director  General,  and  his  successoi-s,  and  upon  the  Com- 
pany, its  successors  and  assigns, 

This  agreement  shall  not  be  construed  as  creating  any  right, 
claim,  privilege,  or  benefit  against  either  party  hereto  in  favor  of 
any  State  or  any  subdivision  thereof,  or  of  any  individual  or  cor- 
poration other  than  the  parties  hereto. 

(7j)  AYlierever  in  this  agreement  the  words  Director  General  are 
used,  they  shall  be  understood  as  designating  William  G.  ISIcAdoo, 
or  such  other  person  as  the  President  may  from  time  to  time  appoint 
to  exercise  the  powers  conferred  on  him  by  law  with  relation  to 
Federal  control. 

Section  2.  The  Company's  said  railroad  affected  by  this  agree- 
ment shall  be  considered  as  including  the  following  roads  and 
properties : 

Section  3.  (a)  The  Company  accepts  the  terms  and  conditions  of 
said  Federal  Control  Act  and  the  terms  of  this  agreement,  and  ex- 
pressly accepts  the  covenants  and  obligations  of  the  Director  Gen- 
eral in  this  agreement  set  out  and  the  rights  arising  thereunder  in 
full  adjustment,  settlement,  satisfaction,  and  discharge  of  any  and 
all  claims  and  rights,  at  law  or  in  equity,  which  it  now  has  or  here- 
after can  have  against  the  United  States,  the  President,  the  Director 
General,  or  am-  agent  or  agency  thereof  by  virtue  of  anything  done 
or  omitted,  pursuant  to  the  acts  of  Congress  herein  referred  to. 

This  is  not  intended  to  affect  any  claim  said  Company  may  have 
against  the  United  States  for  carrying  the  mails  or  for  other  services 
rendered  not  pertaining  to  or  based  upon  the  Federal  Control  Act. 
105889°— 19 G 


82 

(h)  The  Company,  on  its  own  initiative  or  upon  the  request  of 
the  Director  General,  shall  take  all  appropriate  and  necessary  cor- 
porate action  to  carry  out  the  obligations  assumed  by  it  in  this  agree- 
ment  or  lawfully  imposed  upon  it  by  or  pursuant  to  the  Federal 
Control  Act. 

Section  4.  It  is  expressly  agreed  and  understood  that  the  posses- 
sion and  use  of  the  railroad  property  herein  described  subject  to 
the  right  of  the  Director  General  to  take  the  said  property  into 
actual  possession  as  hereinafter  provided,  as  a  war  emergency,  shall 
remain  in  the  Company,  and  the  Company  shall  continue  to  operate 
the  same,  and  all  revenues  accruing  from  the  operation  thereof  shall 
belong  to  the  Company,  and  all  expenses  arising  out  of  or  incident 
thereto,  and  all  taxes  of  whatsoever  character  imposed  thereon,  or 
upon  the  Company  shall  be  paid  and  borne  by  the  Company,  it  be- 
ing expressly  agreed  that  unless  and  until  the  Director  General  shall 
as  a  war  necessity  take  over  the  actual  possession  and  operation  of 
said  railroad,  he  assumes  no  obligation  for  the  payment  of  any  ex- 
penses or  charges  in  connection  therewith,  nor  of  any  risk  or  acci- 
dent in  connection  with  the  operation  or  control  of  said  property. 

Section  5.  All  rates,  fares,  and  charges  for  transportation  services 
performed  jointly  by  the  Company  and  any  transportation  system 
in  the  possession  of,  and  operated  by,  the  Director  General  shall  be 
dividecl  fairly  between  the  Director  General  and  the  Company.  It 
is  agreed  that  the  arbitraries  and  percentages  of  joint  rates,  both 
passenger  and  freight,  received  by  the  Company  as  of  January  1, 
1918,  shall  not  be  reduced,  and  whenever  joint  rates  have  been  or 
shall  be  increased,  the  Company  shall  receive  as  its  proportion  of 
such  increased  joint  rates  amounts  in  the  same  ratio  as  its  arbitraries 
or  percentages  bore  to  the  joint  rates  before  they  were  increased. 

Section  6.  The  Company  shall  receive  an  equitable  allotment  of 
the  cars  (and,  where  feasible,  motive  power)  in  the  possession  or 
under  the  control  of  the  Director  General.  For  the  equipment  thus 
furnished  it  shall  pay  the  per  diem  rentals  now  in  effect  or  as  they 
may  be  established  from  time  to  time  by  the  Director  General,  and 
like  rentals  shall  be  paid  by  the  Director  General  to  the  Company 
for  any  of  the  Company's  equipment  used  by  him :  Provided,  how- 
ever, That  there  shall  be  a  time  or  reclaim  allowance  to  roads  of  100 
miles  or  less  in  length,  of  two  days,  which  will  be  assumed  by  the 
delivering  road. 

Section  7.  Such  arrangements  shall  be  made  for  the  routing  over 
the  Company's  line  of  competitive  traffic  as  shall  insure  to  the  Com- 
pany in  any  month  the  same  proportion  of  such  competitive  traffic 
as  it  had  of  the  total  of  such  traffic  for  the  average  of  the  three 
years,  counting  the  calendar  years  of  1915,  191G,  and  1917,  taking 


83 

into  account  both  class  and  quantity  of  tonnage,  it  being  understood 
and  agreed  that  if  in  any  month  such  proportion  of  competitive 
traffic  delivered  to  the  Company  shall  be  less  than  that  based  on  the 
average  for  the  three-year  period,  the  Director  General  will,  within 
60  days  after  the  close  of  any  such  month,  deliver  such  additional 
amount  of  competitive  traffic  as  shall  make  up  the  required  amount. 

Section  8.  If  differences  arise  as  to  any  matter  arising  under  this 
contract,  either  party  may  refer  the  question  to  the  Interstate  Com- 
merce Commission,  and  its  decision  shall  be  final  and  binding. 

Section  9.  The  Company,  so  far  as  practicable,  shall  have  the 
right  to  use  the  purchasing  agencies  of  the  Director  General  in  the 
purchase  of  materials  and  supplies  at  the  prices  which  the  Director 
General  shall  pay  therefor,  and  to  have  its  repairs  done  in  the  shops 
of  its  connecting  lines  to  the  same  extent  and  upon  the  same  terms 
as  were  enjoyed  before  Federal  control;  where  roads  have  hereto- 
fore not  had  the  repairs  done  at  the  shops  of  the  connecting  line, 
but  at  private  shops  which  have  since  been  closed,  they  may  have 
their  repairs  done  at  the  shops  of  the  connecting  line  upon  fair 
terms. 

Section  10.  There  shall  be  no  cliscriminaton  against  the  Company 
in  the  matter  of  publishing  tariffs  and  routing.  In  all  publication  of 
rates,  tariffs,  and  routing,  covering  the  territory  in  which  the  Com- 
pany's road  is  situated,  the  Company  shall  be  treated  in  the  same 
manner  as  the  trunk  lines,  except  that  nothing  in  this  section  shall 
be  construed  to  require  the  establishment  of  joint  rates  where  joint 
rates  were  not  in  effect  at  the  commencement  of  Federal  control. 

Section  11.  It  is  expressly  agreed  that  if  in  the  opinion  of  the 
Director  General  a  necessity  shall  arise  making  it  necessary  or  desir- 
able for  any  purpose  connected  with  the  war,  for  the  Director  Gen- 
eral to  take  into  his  own  hands  the  possession,  control,  and  operation 
of  said  railroad  and  the  properties  herein  described,  he  shall  have  the 
right  to  do  so.  In  such  event  this  contract  shall  be  terminated  and  a 
new  contract  made  providing  for  the  payment  of  compensation  as 
provided  by  the  Federal  Control  Act;  and  if  in  the  meantime  it 
becomes  necessary  in  his  opinion  to  issue  any  orders  or  directions  to 
said  Company  affecting  the  movement  of  troops  or  war  supplies,  said 
Company  shall  obey  such  orders  or  directions. 

Section  12.  In  view  of  the  foregoing  covenants  and  agreements, 
and    subject    thereto,     the    order     of    relinquishment    issued    on 

the day  of  June,  1918,  is  hereby  rescinded  and  set  aside 

as  of  the  date  when  the  same  was  issued;  and  the  said  railroad  and 
the  properties  herein  described  are  hereby  brought  fully  within  the 
terms  and  under  the  control  of  the  said  Federal  Control  Act,  the  same 
in  all  respects  as  if  the  said  order  of  relinquishment  had  not  been 
issued. 


84 

Section  13.  The  Director  General  will  formulate  definite  rules  and 
regulations  governing  exchange  transportation,  which  rules  and 
regulations  shall  be  made  applicable  to  the  Company  without  dis- 
crimination. 

Execution. 

In  witness  whereof,  these  presents  have,  on  the  day  and  year  first 
above  written,  been  duly  signed,  sealed,  and  delivered  by  William  G. 
McAdoo,  Director  General  of  Railroads,  and  duly  signed,  sealed, 

and  delivered  by  the , 

by  its  President,  and  its  corporate  seal  affixed  hereto,  attested  by  its 
Secretary,  such  execution  and  delivery  on  the  part  of  said  Company 
having  been  duly  authorized  and  directed  by  vote  of  its  Board  of  Di- 
rectors at  a  meeting  duly  called  and  properly  held  on  the 

day  of ,  1918,  which  action  of  said  Board  of  Directors  was 

duly  authorized  by  vote  of  the  stockholders  of  the  said  Company,  at 

a  meeting  duly  called  and  properly  held  at on , 

certificates  of  which  meetings,  duly  attested  by  the  Secretary  of  said 
Company,  have  been  lodged  with  the  Director  General. 


Director  General  of  Railroads. 
._  Rail Company. 


By 

Attest: 


President. 


Secretary. 


MEMORANDUM  OF  AGREEMENT  BETWEEN  WILLIAM  G.  McADOO, 
DIRECTOR  GENERAL  OF  RAILROADS,  AND  THE  AMERICAN 
RAILWAY  EXPRESS  COMPANY. 


This  agreement,  made  this  2Gth  day  of  June,  1918,  between. 
William  G.  McAdoo,  Director  General  of  Eaih'oads,  hereinafter 
called  the  Director  General,  acting  on  behalf  of  the  United  States 
and  the  President,  under  the  poAvers  conferred  on  him  by  proclama- 
tions of  the  President  dated  December  26,  1917,  and  March  29,  1918, 
and  the  American  Kailway  Express  Company,  hereinafter  referred 
to  as  the  Express  Company, 

Wifnesseth: 

That  for  and  in  consideration  of  the  mutual  covenants,  separate 
services,  and  payments  hereinafter  recited  to  be  by  the  parties  kept, 
performed,  and  made,  the  parties  do  hereby  agree  as  follows : 

I. 

That  in  the  interest  of  greater  efficiency  in  express  service  and 
effecting  economies  in  operating  expenses  of  both  the  railroads  under 
Federal  control  and  the  Express  Company  the  Director  General 
hereby  employs  the  Express  Company  as  the  sole  agent  of  the  Gov- 
ernment under  the  supervision  of  the  Director  General  of  Eailroads 
to  conduct  the  express  transportation  business  upon  all  lines  of  rail- 
road under  Federal  control  and  upon  such  other  systems  of  trans- 
portation or  parts  thereof  as  in  the  judgment  of  the  Director 
General  it  may  be  necessary  or  desirable  to  include. 

II. 

This  contract  shall  take  effect  on  July  1,  1918,  and  shall  continue 
during  the  full  period  of  Federal  control  as  that  period  is  limited 
by  section  11  of  "An  Act  to  Provide  for  the  Operation  of  Trans- 
portation Systems  while  under  Federal  Control,  for  the  Just  Com- 
pensation of  Their  Owners,  and  for  Other  Purposes,"  approved 
March  21,  1918. 

III. 

The  express  transportation  business  to  be  carried  on  under  this 
contract  is  understood  to  mean  such  transportation  business  as  is 

(S3) 


86 

commonly  carried  on  by  express  companies  at  the  present  time,  or 
as  may  be  carried  on  by  them  during  the  continuance  of  this  contract, 
and  for  the  purpose  of  this  contract  it  is  agreed  that  the  express  busi- 
ness contemplated  by  this  contract  shall  include  all  matter  carried 
on  passenger,  express,  or  mail  trains  of  the  railroards,  except  bag- 
gage of  passengers  and  theatrical  scenery  and  belongings  when 
checked  on  regular  transportation,  United  States  and  railroad  mail, 
including  parcel-post  matter,  corpses  when  accompanied  by  some  one 
in  charge,  news  trunks  and  property  necessary  to  carry  on  the  usual 
news  business,  goods  and  material  for  the  use  of  the  railroads,  and 
supplies  for  railroad  eating  houses  and  dining  ears.  The  Director 
General  as  well  as  the  Express  Company  shall  have  the  right  to 
carry  on  such  trains  freight  from  the  Orient  imported  by  Coast  ports, 
newspapers,  milk,  and  cream  and  returned  empties:  Provided^  hoio- 
ever,  That  nothing  in  this  agTeement  shall  prevent  the  Director  Gen- 
eral from  transporting  horses,  carriages,  or  cattle  or  other  classes  of 
freight  upon  passenger  trains  when  necessary  in  emergencies  to  avoid 
delay  to  freight  shipments ;  and  provided  further,  that  no  explosives, 
inflammable  articles,  or  acids  shall  be  considered  express  traffic  except 
such  as  it  may  be  lawful  to  transport  on  passenger  trains  v\dien  prop- 
erly packed,  marked,  and  certified  to  as  required  by  the  regulations 
of  the  Interstate  Commerce  Commission  or  other  public  authority  for 
the  transportation  of  explosives,  by  the  rules  of  the  American  Rail- 
way Association,  and  such  regidations  for  the  transportation  of  in- 
flammable articles  and  acids  as  may  be  fixed  by  the  Director  General. 
The  maximum  weight  to  be  carried  in  any  of  the  cars  carrying  ex- 
press business  shall  not  exceed  a  limit  which  in  the  judgment  of  the 
Director  General  is  necessary  for  safety.  Articles  which  can  only  be 
loaded  and  unloaded  through  end  doors  of  express  or  baggage  cars 
causing  delays  to  passenger  trains  in  switching  for  this  purpose  shall 
not  be  accepted  by  the  Express  Company  unless  a  special  car  is  fur- 
nished and  charged  for  at  the  carload  rate,  and  the  Express  Company 
shall  not  accept  shipments  which  can  not  be  so  handled  as  to  avoid 
unusual  delays  to  the  trains  of  the  Government. 

Said  express  transportation  business  shall  be  conducted  under  such 
rates,  charges,  classifications,  regidations,  and  practices  as  are  now 
or  may  hereafter  be  lawfully  established.  The  Director  General 
shall  take  all  steps  lawfully  necessary  to  make  any  change  in  such 
rates,  charges,  classifications,  regulations,  and  practices.  The  Ex- 
press Company  sliall  propose  no  reduction  in  rates  or  charges  without 
the  prior  approval  of  such  reduction  by  the  Director  General.  The 
Express  Company  shall  solicit  no  express  shipments  disapproved  by 
the  Director  General. 


87 

IV. 

The  Director  General  shall  furnish  adequate  and  suitable  space 
in  cars  properly  equipped,  heated,  lighted,  and  lettered  American 
Railway  Express  Company  of  the  kind  customarily  furnished  by 
railroad  companies  for  the  use  of  express  companies  on  such  pas- 
senger, mail  and  express  trains  as  may  be  designated  from  time  to 
time  by  the  Director  General  over  each  of  the  lines  of  railroad 
covered  by  this  contract  for  the  transportation  and  proper  handling 
en  route  of  all  express  matter  tendered  by  the  Express  Company  at 
any  station  at  which  said  trains  make  regular  stops  and  shall  carry 
such  express  matter  and  the  safes,  packing  trunks,  supplies,  and 
equipment  of  the  Express  Company,  together  with  the  messengers, 
helpers,  and  guards  of  the  Express  Company  necessary  for  the 
handling  and  protection  of  such  express  matter  to  destination  or  the 
proper  transfer  points  on  said  railroads.  The  Director  General 
shall,  so  far  as  it  can  conveniently  be  done  without  interfering  with 
his  business,  permit  the  Express  Company  to  use  a  portion  of  sta- 
tion buildings  on  the  lines  covered  by  this  agreement  without  charge 
therefor  for  the  reception,  loading  and  unloading,  safe-keeping,  and 
delivery  of  express  matter  carried  under  this  agreement.  Where 
special  services  or  facilities  have  been  furnished  upon  payments  by 
the  express  companies  in  addition  to  the  percentage  of  gross  earn- 
ings both  parties  hereto  shall  have  the  benefit  of  such  arrangements 
until  otherwise  determined  by  the  Director  General  or  by  the  Ex- 
press Company  after  notice  and  hearing.  The  movement  of  express 
shall  be  under  the  control  of  the  Director  General  at  all  times  and 
transported  over  such  lines  of  railroad  and  on  such  trains  as  he  may 
direct  in  the  interest  of  economy  in  car  service  by  utilizing  available 
space  and  with  proper  regard  for  the  necessity  of  prompt  movement. 

V- 

Said  Express  Company  shall  use  its  teams,  property,  offices,  and 
other  facilities,  and  its  agents  and  employees  in  operating  an  express 
transportation  business  on  all  the  lines  of  railroad  under  Federal 
control,  and  upon  such  other  systems  of  transportation,  or  parts 
thereof,  as  in  the  judgment  of  the  Director  General  it  may  be  neces- 
sary or  desirable  to  include;  and  in  the  conduct  of  said  business  will 
exert  itself  in  all  proper  ways  to  make  said  business  satisfactory  to 
the  public  and  to  the  Director  General.  All  contracts  between  the 
Express  Company  and  railroads  and  systems  of  transportation  not 
under  Federal  control  shall  be  subject  to  the  approval  of  the  Director 
General. 


88 

yi. 

The  Express  Company  sliall  be  liable  for  all  loss  or  damage  to  the 
facilities  furnished  by  the  Director  General  to  the  Express  Company 
for  use  in  the  express  transportation  business  caused  by  the  Express 
Company,  its  agents,  or  employees. 

As  between  the  Director  General  and  the  Express  Company,  the 
Express  Company  shall  be  liable  for  any  and  all  claims  on  account 
of  loss,  damage,  or  delay  to  its  own  property  or  the  property  of  others 
in  its  charge  carried  under  the  provisions  of  this  contract,  and  it 
shall  assume  all  risk  of  injury  or  death  to  its  agents  or  employees 
while  engaged  in  its  business  on  any  of  the  lines  or  premises  covered 
by  this  contract ;  and  shall  indemnify  and  save  harmless  the  Director 
General  or  any  agent  or  employee  of  the  Director  General,  including 
any  railway  company  engaged  in  the  operation  of  any  railroad  under 
Federal  control  covered  by  this  contract, -and  the  employees  of  any 
such  company,  against  all  claims,  demands,  suits,  and  actions  what- 
soever that  maj'  be  begun  against  any  of  the  same  on  account  of  any 
claim  arising  or  growing  out  of  the  undertaking  so  above  assumed 
whether  in  law  or  in  equity  or  before  any  compensation  board, 
tribunal,  or  court  whatsoever;  and  any  amounts  paid  hereunder  shall 
be  charged  to  operating  expenses. 

VII. 

In  any  action  at  law  or  in  equity  or  other  proceeding  brought 
against  said  Express  Company  before  any  compensation  board,  court, 
or  other  tribunal  it  will  make  no  defense,  except  with  the  approval 
of  tlie  Director  General,  upon  the  ground  that  it  is  by  virtue  of  this 
contract  an  instrumentality  or  agency  of  the  Federal  Government; 
nor  will  it  seek  to  transfer  to  a  Federal  Court  any  such  action 
brought  against  it  in  any  state  court  upon  the  like  ground  except 
Avith  the  approval  of  the  Director  General.  Any  and  all  other  legal 
rights  of  the  Express  Company  except  as  above  limited  are  expressly 
reserved. 

YIII. 

From  the  gross  revenue  earned  on  the  transportation  by  the  Ex- 
press Company  of  all  the  express  traffic  on  all  lines  under  Federal 
control  covered  by  this  contract,  under  such  rates,  charges,  and 
classifications  as  shall  be  in  force,  it  shall  pay  to  the  Director  General 
50.25  per  cent. 

To  the  balance  of  tlie  rcvciiuos  tlius  remaining  there  shall  l)e  added 
the  following: 

Ciross  revenue  derived  fi-om  express  transportation  operations  over 
any  lines  not  under  Federal  control,  less  payments  to  such  lines  under 
contracts  in  force  with  them ;  all  miscellaneous  income  derived  from 


89 

express  operations,  including  rentals,  compensation  received  for  the 
sales  of  money  orders  or  other  financial  paper,  charges  assessed  in 
addition  to  transportation  charges,  such  as  value  charges,  and  income 
from  money  or  securities  invested  in  the  dividend  guaranty  fund  as 
described  in  paragraph  -i  of  this  section.  The  resulting  total  shall  be 
known  as  "  Gross  Contract  Income." 

From  the  gross  contract  income  as  here  defined,  the  Express  Com- 
pany shall  defray  the  operating  expenses,  rentals,  taxes,  except  war 
taxes,  and  any  other  proper  expenditures  not  disapproved  by  the 
Director  General  incurred  in  express  operations,  the  remainder  being 
termed  ''Contract  Income  for  Division."  The  term  "Operating 
expenses,"  as  herein  used,  shall  embrace  all  items  prescribed  by  the 
Interstate  Commerce  Commission's  classification  of  express  accounts 
as  operating  expenses  for  express  companies. 

From  the  contract  income  for  division,  an  amount  equal  to  5  per 
cent  of  the  total  par  value  of  the  outstanding  capital  stock  of  the 
Express  Company  shall  first  be  set  apart  for  the  payment  of  divi- 
dends or  general  corporate  purposes,  herein  termed  "  Primary  Allow- 
ance," Avhich  shall  be  cumulative.  Any  excess  of  contract  income  for 
division  over  said  primary  allowance,  up  to  2  per  cent  of  the  par 
value  of  the  capital  stock  of  the  Express  Company,  shall  be  divided 
one-half  to  the  said  Company  to  be  set  apart  for  dividends  or  gen- 
eral corporate  purposes,  and  one-half  to  the  Director  General.  The 
remainder  to  the  extent  necessary  shall  be  paid  into  a  g-uaranty  fund,, 
which  fund  shall  not  at  any  time  exceed  an  amount  equivalent  to  10 
per  cent  of  the  total  par  value  of  the  outstanding  capital  stock.  ^  This 
fund  shall  be  held  by  the  Express  Company  to  insure  its  ability  to 
pay  for  each  year  during  the  life  of  this  contract  an  amount  equal 
to  5  per  cent  upon  the  total  par  value  of  its  capital  stock  from  July 
1, 1918.  Any  earnings  from  such  fund  shall  be  considered  as  contract 
income  for  division. 

If  the  contract  income  for  division  in  any  year  shall  not  be  equal 
to  five  per  cent  of  the  capital  stock  as  herein  provided,  any  amount 
lacking  shall  be  withdrawn  from  said  guaranty  fund  to  supply  such 
deficiency  to  the  extent  that  said  fund  is  sufficient  for  that  purpose, 
and  the  said  fund  shall  thereafter  be  restored  from  the  contract  in- 
come for  division  after  deducting  the  five  per  cent  primary  allow- 
ances and  the  next  two  (2)  per  cent  as  hereinbefore  provided,  in  the 
same  manner  as  the  fund  was  originally  created.  Provided,  that 
should  there  not  be  a  sufficient  sum  in  said  guaranty  fund  to  furnish 
the  amount  necessary  to  pay  said  primary  allowance  at  any  time,  the 
said  deficiency  shall  be  paid  from  said  fund  when  there  shall  be  suffi- 
cient money  therein. 

Any  amount  in  said  guaranty  fund  at  the  termination  of  this  con- 
tract, or  that  may  be  due  thereto  and  not  required  for  the  purpose 


90 

for  wliicli  the  fund  was  established,  shall  be  divided  between  the 
Express  Company  and  the  Director  General  in  the  proportion  of 
forty  per  cent  to  said  Express  Company  and  sixty  per  cent  to  the 
Director  General. 

After  the  accumulation  of  the  guaranty  fund,  any  contract  income 
for  division  in  excess  of  the  said  five  per  cent  primary  allowance  and 
the  said  two  (2)  per  cent  hereinbefore  provided  shall  be  divided  as 
follows : 

The  next  three  (3)  per  cent  upon  the  total  par  value  of  said  capital 
stock  in  the  jDroportion  of  one-third  to  said  company  and  two-thirds 
to  the  Director  General;  and  any  sum  beyond  that  amount  in  pro- 
portion of  one-fourth  to  said  company  and  three- fourths  to  the 
Director  General. 

It  is  the  understanding  and  agreement  of  the  parties  that  the 
"  contract  income  for  division "  is  not  the  income  or  property  of 
the  Express  Company  but  is  a  fund  resulting  from  the  terms  of  this 
agreement  in  which  the  Director  General  and  the  Express  Company 
have  a  mutual  interest.  The  Express  Company  has  no  right  to  any 
portion  of  this  fund  except  that  which  it  finallj'^  retains  under  the 
terins  of  this  agreement  and  which  is  the  compensation  paid  it  by 
the  Director  General  for  the  performance  of  its  service  as  the  agent 
of  the  Director  General  in  the  transaction  «f  this  express  business. 
Only  that  portion  of  the  fund  belonging  to  the  Express  Company 
shall  be  included  in  the  net  income  of  the  Express  Company  for 
taxation  under  titles  1  and  2  of  an  act  entitled  "  An  act  to  provide 
revenue  to  defray  war  expenses,  and  for  other  purposes,"  approved 
October  3,  1917,  or  any  act  in  addition  thereto  or  any  amendment 
thereof  or  any  supplements  thereto.  If  the  Express  Company  shall 
be  recjuired  to  pay  said  war  taxes  upon  any  part  of  the  contract  in- 
come for  division  belonging  to  the  Director  General,  the  Director 
General  shall  and  does  hereby  indemnify  and  save  harmless  the 
Express  Company  against  any  payments  that  .may  hereafter  be 
demanded  of  or  imposed  upon  said  Express  Company  on  account 
of  taxes  that  may  be  levied  under  titles  1  and  2  of  said  act  upon  that 
part  of  the  said  contract  income  for  division  paid  or  credited  to  the 
Director  General  hereunder. 

The  term  "Revenues  Earned,"  as  used  herein,  is  intended  to  mean 
the  amount  of  revenue  earned  for  the  service  performed,  less  any 
sums  subsequently  determined  to  be  uncollectible. 

IX. 

The  Express  Company  shall,  within  sixty  (60)  days  after  the  end 
of  each  calendar  month,  pay  to  the  Director  General  a  sum  of  money 
equivalent  as  nearly  as  may  be  to  the  precentage  of  gross  revenues 
earned  in  such  month  provided  for  in  the  first  paragraph  of  Section 


91 

"VIII;  within  sixty  (GO)  days  after  June  30th  and  December  31st 
of  each  year,  the  Express  Company  shall  render  to  the  Director 
General  a  statement  in  such  form  and  detail  as  he  shall  require, 
showing  the  gross  revenues  earned  in  said  six  (6)  months'  period 
ending  witli  June  30th  and  December  31st,  and  within  ten  (10)  days 
thereafter  it  shall  pay  to  the  Director  General  the  balance,  if  any, 
due  to  the  Director  General  under  the  first  'paragraph  of  Sec- 
tion VIII. 

Within  ninety  (90)  days  after  the  end  of  each  calendar  year  or 
the  termination  of  Federal  control  said  Express  Company  shall 
render  to  the  Director  General  a  statement  in  such  form  and  detail 
as  he  shall  require,  showing  the  results  of  operation  of  said  Express 
Company  under  this  contract  in  a  year,  or  part  thereof,  determined 
as  hereinbefore  provided,  and  within  ten  (10)  days  after  the  rendi- 
tion of  said  statement,  shall  pay  to  the  Director  General  whatever 
sum  shall  be  due  to  him  under  this  contract. 

X. 

The  salaries  paid  by  the  Express  Company  to  its  officers  shall  be 
reasonable.  All  salaries  in  excess  of  $10,000  a  year  shall  be  reported 
to  the  Director  General.  If  he  shall  determine  that  any  such  salary 
is  um-easonable  and  shall  notify  the  Express  Company  in  writing 
the  maximum  salary  which  he  regards  as  reasonable,  any  amount  in 
excess  of  such  maximum  salary  so  fixed  which  shall  be  paid  to  such 
officer  for  salary  after  the  giving  of  such  notice  shall  be  excluded 
from  any  accounts  of  the  Express  Company  used  in  determining 
the  contract  income  for  division. 

XI. 

The  accounts  of  the  Express  Company  shall  be  kept  in  form  and 
manner  prescribed  by  the  interstate  Commerce  Commission  and  the 
Government  shall  have  the  right  to  inspect  such  accounts  at  any  and 
all  reasonable  times  through  its  duly  authorized  agents;  but  the 
Express  Company  shall  not  be  required  to  apportion  its  earning-s 
among  the  various  individual  railroad  lines  and  systems  or  to  ascer- 
tain the  earnings  accruing  on  any  individual  railroad  line  under  Fed- 
eral control,  and  the  Director  General  may  from  time  to  time  require 
the  Express  Company  to  furnish  such  statistics  or  special  statements 
as  may  be  reasonably  necessary  in  connection  with  the  operations 
under  this  contract. 

XII. 

The  Director  General  shall  have  the  right  to  require  the  trans- 
portation without  charge  by  the  Express  Company  over  any  and 
all  lines  of  railroad  under  Federal  control  of  all  packages  of  money, 


92 

valuables,  papers,  and  shipments  of  materials  and  supplies  ordinarily 
forwarded  by  express,  used  in  the  operation  of  any  of  the  railroads 
under  Federal  control :  Promded^  hoivever,  That  the  Express  Com- 
pany shall  not  be  liable  for  any  loss  or  injury  of  said  shipments  so 
carried  unless  caused  by  the  theft,  dishonesty,  or  carelessness  of  the 
employees  of  the  Express  Company.  When  the  Express  Company 
and  tlie  railroad  un'der  Federal  control  employ  the  same  agents,  the 
receipt  of  the  express  messenger  on  the  train  for  railway  property 
shall  constitute  a  delivery  to  the  Express  Company  and  the  receipt 
of  the  party  to  whom  the  packages  may  be  addressed  or  his  repre- 
sentative shall  constitute  a  delivery  by  the  Express  Company. 

XIII. 

The  Director  General  will  transport  upon  the  passenger  and  ex- 
press trains  of  the  lines  covered  by  this  contract  free  of  charge,  on 
passes  to  be  issued  by  the  Director  General  or  proper  railway  official 
on  proper  application  therefor,"  the  officers,  agents,  and  employees  of 
the  Express  Company  when  traveling  in  the  interest  of  or  upon  the 
business  of  said  Express  Company.  He  wall  also  transport  free 
of  charge  upon  the  freight  trains  of  the  lines  covered  by  this  contract 
the  equipment  and  materials  of  the  Express  Company  required  for 
use  by  it  on  the  lines  covered  by  this  contract,  but  no  hay,  grain,  or 
other  feed  stuffs  shall  be  so  transported  for  more  than  500  miles. 
He  will  also  transport  free  of  charge  equipment,  stationery,  and  office 
supplies  of  the  Express  Company  in  cars  or  parts  of  cars  set  apart 
for  the  use  of  the  Express  Company.  The  Express  Company  as- 
sumes the  risk  of  loss  or  damage  resulting  from  all  such  transporta- 
tion and  agrees  to  indemnify  and  save  harmless  the  Director  General 
or  any  individual  railroad  under  Federal  control  covered  by  this  con- 
tract involved  therein  from  all  claims  for  loss  or  damages  arising 
from  such  transportation. 

XTV. 

The  Director  General  will  transmit  for  the  Express  Compan}-,  free 
of  charge,  over  all  telegi\aph  or  telephone  of  individual  railroads  or 
raili'oad  systems  lines  operated  as  a  part  of  said  lines  of  railroad 
under  Federal  control  covered  by  this  contract,  all  business  messages 
relating  to  the  express  transportation  business  of  such  railroads  or 
railroad  systems  to  be  conducted  by  said  Express  Company:  Pro- 
vided, hcncever.  That  the  Express  Company  releases  and  holds  harm- 
less the  Director  General  or  any  Railroad  Company  from  all  liabili- 
ties arising  from  any  error  or  delay  in  the  transmission  of  such  mes- 
sages or  from  failure  to  forward  and  delivci"  the  same. 


93 
XV. 

The  Director  General  ma}'  employ  any  of  the  employees  of  the  Ex- 
press Company  upon  such  reasonable  terms  as  shall  be  agreed  npon 
between  the  parties,  and  the  Express  Company  may  employ  such  em- 
ployees of  the  Director  General  or  agents  of  the  railroads,  and 
upon  such  terms  as  may  be  agreed  upon  from  time  to  time  by  the 
Director  General  and  the  Express  Company.  Where  station  agents 
of  the  Director  General  or  of  the  railroad  are  employed  by  the  Ex- 
press Company,  the  Director  General  shall  pay  such  agents  the  en- 
tire compensation  for  their  services  to  the  Director  General,  the 
railroads,  and  the  Express  Company,  and  no  payment  shall  be  made 
direct  by  the  Express  Company  to  any  such  agent  whose  services  may 
be  so  furnished  by  the  Director  General.  The  Express  Company 
shall  pay  to  the  Director  General  the  usual  commissions  heretofore 
paid  upon  express  transportation  business  at  stations  where  such 
station  agents  are  joint  agents  as  its  share  of  the  agent's  compensation. 

Liability  for  personal  injury  or  death  of  any  joint  employee,  when 
it  can  be  determined  that  such  injury  or  death  was  sustained  while 
the  employee  was  engaged  exclusively  in  express  service,  will  be 
borne  by  the  Express  Company,  and  the  Express  Company  will 
bear  all  costs  and  expenses  incident  to  the  settlement  thereof.  When 
it  can  be  determined  that  such  injury  or  death  was  sustained  while 
the  employee  was  engaged  exclusively  in  railroad  service,  the  Direc- 
tor General  will  bear  all  costs  and  expenses  incident  to  the  settlement 
thereof.  Where  the  cause  or  causes  of  such  injury  or  death  can  not 
be  determined  the  Express  Company  and  the  Director  General  will 
bear  the  same  in  the  proportion  in  which  the  wages  paid  by  each 
bear  to  the  total  compensation,  in  which  latter  case  no  settlement 
shall  be  made  by  either  party  without  the  consent  of  the  other. 

XVI. 

When  cars  other  than  the  regular  equipment  assigned  for  express 
traffic  are  requested  by  the  Express  Company  in  order  to  carry  ship- 
ments of  an  unusual  character,  and  such  cars  are  furnished  by  the 
Director  General,  said  Express  Company  shall  pay  the  expense  of 
fitting  up  such  cars  for  its  use  and  of  restoring  the  same  to  their 
normal  conditions  thereafter,  the  reasonable  compensation  therefor 
to  be  determined  by  the  Director  General. 

XVII. 

The  Express  Company  will  load  and  unload  its  express  matter,  or 
require  the  shippers  and  consignees  to  do  so,  upon  or  from  all  cars 
assigned  regularly  or  specially  to  express  transportation  traffic. 


94 

XVIII. 

All  of  the  agents  and  employees  of  the  Express  Companj^  while  on 
the  premises  or  on  lines  of  railroad  under  Federal  control  covered  by 
this  contract  shall  at  all  times  conform  to  the  general  rules  in  force 
thereon,  and  in  case  any  messenger  or  other  employee  on  any  said  line 
shall  from  any  cause  be  objectionable  to  the  Director  General  he  shall 
be  removed  or  discharged  upon  the  written  request  of  the  Director 
General  or  of  the  Director  General's  principal  operating  representa- 
tive on  such  line. 

XIX. 

The  Director  General  shall  allow  the  Express  Company  the  usual 
mileage  rates  on  all  cars  belonging  to  the  Express  Company  and  used 
in  handling  the  business  under  this  contract  over  the  railroad  lines 
operated  and  controlled  by  the  Director  General.  The  mileage  com- 
pensation allowed  by  the  Director  General  to  the  Express  Company 
shall  be  considered  a  part  of  the  gross  contract  income  of  the  Express 

Company. 

XX. 

The  Express  Company  will  take  over  and  continue  the  payment 
of  pensions  to  former  employees  of  the  several  express  companies, 
which  employees  have  heretofore  been  pensioned  under  their  rules, 
but  no  such  pension  shall  exceed  One  Hundred  and  Twenty-five 
($125.00)  Dollare  per  month.  The  officers  and  employees  of  the  sev- 
eral express  companies  who  may  be  employed  by  the  Express  Com- 
pany shall  retain  the  same  rights  to  pension  from  said  new  corpora- 
tion as  they  have  at  the  time  of  change  in  employment.  The  plan 
and  pension  rules  of  the  Express  Company  shall  be  submitted  to  the 
Director  General  and  if  disapproved  by  him  in  any  particular  shall 
not  become  effective  until  so  modified  as  to  meet  his  approval;  the 
sums  paid  on  account  of  such  pensions  shall  be  charged  to  operating 
expenses. 

XXI. 

The  Express  Company  will  enter  into  a  contract  with  the  Express 
Companies  parties  to  memorandum  of  agreement  with  the  United 

States,  dated ,  1918,  for  the  period  of  this  contract  as 

the  agent  of  said  Express  Companies  in  their  foreign  business  and 
for  the  handling  of  money  orders  and  other  financial  paper,  and  for 
such  other  purposes  as  may  be  desired,  unless  in  the  judgment  of  the 
Director  General  the  express  transportation  business  conducted  by 
said  Express  Company  will  be  prejudiced  thereby.  The  Express 
Company  shall  be  paid  by  said  Express  Companies  such  compensa- 
tion for  its  services  as  shall  be  agreed  upon  between  the  parties  from 


95 

time  to  time  as  fair  and  reasonable,  which  compensation  shall  be 
considered  as  a  part  of  the  gross  contract  income  of  the  Express 
Company.  The  Director  General,  however,  may  require  said  con- 
tract to  be  submitted  to  him  for  his  approval,  and  no  contract  dis- 
approved by  him  shall  thereafter  be  effective  between  the  parties. 

XXII. 

The  Director  General  will  perform  all  necessary  switching  service 
for  cars  in  express  service  on  the  lines  under  Federal  control  covered 
by  this  contract,  such  as  ordinary  switching  in  connection  with 
regular  trains  at  stations  w^ich  involves  movement  to  and  from  the 
stations,  and  also  to  and  from  a  track  or  siding  assigned  for  the 
handling  of  express  traffic  and  interchange  of  cars  between  railroads 
over  which  the  Express  Company  operates,  and  cars  loaded  with 
live  stock  in  transit  to  and  from  stockyards  for  feed,  water,  and 
rest,  in  compliance  with  the  law  and  service  necessary  by  reason  of 
the  failure  of  the  railroads  to  make  schedule  connection.  For 
miusual  or  extraordinary  service  rendered,  such  as  special  switching 
to  and  from  industry  tracks  or  occasioned  by  reconsignment  of  cars 
and  service  of  like  nature,  the  Express  Company  shall  pay  compensa- 
tion at  the  rate  or  charge  of  the  railroads  made  for  similar  services 
to  other  parties. 

XXIII. 

The  Express  Company  agrees  that  the  icing  and  refrigeration  of 
cars  in  the  service  of  the  Express  Company  while  on  the  lines  covered 
by  this  contract  shall  be  performed  by  the  agency  employed  by  the 
Director  General  for  this  purpose,  the  Director  General  agreeing 
that  the  charges  for  such  service  shall  be  reasonable. 

XXIV. 

No  evidences  of  indebtedness  except  ordinary  bank  or  commercial 
loans  for  current  purposes  shall  be  made  or  issued  by  the  Express 
Company  without  the  prior  approval  in  writing  of  the  Director 
General;  nor  shall  any  lien  of  any  kind  be  placed  by  it  upon  any 
property  of  the  new  corporation  without  the  prior  approval  in  writ- 
ing of  the  Director  General.  All  loans  shall  be  reported  to  the 
Director  General  as  soon  as  made. 

The  stock  issued  by  the  Express  Company  shall  be  sufficient  to 
pay  at  par  for  the  property  transferred  to  it  and  to  provide  the  cash 
necessary  for  working  capital.  The  initial  issue  of  the  stock  of  the 
Express  Company  shall  not  be  made  until  such  issue  shall  have  been 
approved  in  Avriting  by  the  Director  General.  From  time  to  time 
thereafter  as  additional  funds  may  be  necessary  to  purchase  addi- 


96 

tional  property  or  reimburse  the  company  for  additional  property 
purchased  or  for  Avorking  capital,  additional  stock  may  be  issued  by 
the  Express  Company,  but  no  issue  shall  be  made  Avithout  the  ap- 
proval in  writing  of  the  Director  General. 

XXV. 

Either  party  to  this  contract  may,  after  July  1,  1922,  by  not  less 
than  six  months'  notice  in  writing,  to  the  other  party,  cancel  this 
contract. 

XXVI. 

The  Express  Company  agrees  that  it  will  at  any  time  during  the 
existence  of  this  contract,  upon  terms  to  be  agreed  upon  between  the 
parties  hereto,  establish  at  such  places  as  may  be  designated  by  the 
Director  General,  collection  and  delivery  service  for  baggage  and 
less  than  carload  shipments  of  freight. 

XXVII. 

If  during  the  operation  under  this  contract  the  gross  contract  in- 
come hereunder  for  any  contract  year  shall  not  be  sufficient  to  pay 
the  operating  expense  and  taxes  of  the  Express  Company  for  such 
contract  year,  it  is  agreed  that  the  amount  of  any  such  deficit  shall  be 
deducted  from  any  payments  due  the  Director  General  thereafter,  as 
a  further  allowance  by  the  Director  General  to  the  Express  Company. 

XXVIII. 

Any  controversy  Avliich  may  arise  as  to  the  performance  of  any 
part  of  this  contract  shall  be  submitted  to  and  determined  by  the 
Interstate  Connnerce  Commission  after  full  hearing,  and  its  de- 
cision thereon  shall  be  final. 

XXIX. 

The  term  "  capital  stock  "  or  "  outstanding  capital  stock,"  as  used 
herein,  shall  mean  and  include  only  stock  issued  by  the  Express  Com- 
pany upon  the  approval  of  the  Director  General  and  not  canceled. 

The  term  "Director  General,"  as  used  herein,  shall  be  taken  to  ap- 
ply to  any  official  or  person  who  may  noAV  exercise  the  authority  of 
the  United  States  with  respect  to  said  lines  of  railroad  under  Eederal 
control,  or  may  hereafter,  as  the  successor  of  the  Director  General, 
exercise  such  authority. 

The  word  "  railroad,"  as  used  herein,  shall  include  all  systems  of 
transportation  and  appurtenances  thereto  under  Federal  control 
covered  by  this  contract. 


97 

Execution. 

In  witness  Avhereof  these  presents  in  duplicate  originals  have,  on 
the  clay  and  year  first  above  written,  been  duly  signed  and  delivered 
by  William  G.  ^NfcAdoo,  Director  General  of  Railroads,  and  duly 
signed,  sealed,  and  delivered  by  the  American  Railway  Express  Com- 
pan3\  by  George  C.  Taylor,  its  president,  thereto  duly  authorized  by 
a  vote  of  the  directors  of  the  company  at  a  meeting  duly  called  and 
held  on  June  26. 1918,  certificate  of  which  authorization,  dul}^  attested 
by  the  company's  secretary,  is  hereto  attached. 
William  G.  ISIcAdoo, 

Director  General  of  Railroads. 
By  Walker  D.  Hines, 

Assistant  Director  General. 
American  Railway  Express  Company, 
By  George  C.  Tayix)r, 

Its  President. 
Attest : 

F.  P.  Small, 

Secretary. 

Certificate   of   Approval   by   Board    of   Directors    or   American 
Railway  Express  Company. 

At  a  meeting  of  the  board  of  directors  of  the  American  Railway 
Express  Company,  held  at  the  office  of  the  company  at  65  Broadway, 
in  the  city  of  New  York,  on  the  26th  day  of  June,  1918,  on  motion 
duly  made,  seconded,  and  carried,  it  was 

Resolved,  That  the  attached  draft  of  proposed  contract  between  the 
Director  General  of  Railroads  and  the  American  Railway  Express 
Company,  relating  to  the  operation,  compensation,  and  other  matters 
connected  with  the  express  transportation  business  over  the  transpor- 
tation sj'stems  under  Federal  control,  be  approved,  and  the  President 
and  Secretary  be  insti'uctcd  to  execute  the  same. 

George  C.  Taylor. 
Attest : 

F.  P.  Small, 

Secretary. 
105889°— 19 7 


PUBLIC    ANNOUNCEMENTS. 


PASSENGER    TRAVEL. 

Jakuary  5,  1918. 

The  Director  General  said : 

An  important  change  in  the  passenger  train  service  on  the  eastern 
roads  goes  into  eifect  Sunday,  January  6.  I  have  consented  to  this 
change  because  it  is  imperatively  necessary  that  jjassenger  travel 
shall  be  reduced  as  much  as  possible  during  the  present  serious  emer- 
gency which  confronts  the  people  in  the  eastern  section  of  the  coun- 
try. By  elimination  of  unnecessary  passenger  train  service,  much 
motive  power,  skilled  labor,  track  and  terminal  facilities  are  released 
for  the  handling  of  coal  and  food  and  other  supplies  essential  to 
the  life  of  the  people  as  well  as  to  the  suc«ssful  prosecution  of  the 
war.  Every  patriotic  citizen  can  directly  help  the  Government  in 
clearing  up  the  present  unsatisfactory  situation  on  the  railroads  by 
refraining    from    all    unnecessary   travel    at   this   time. 

The  breakdown  in  passenger  service  of  the  various  railroads  in  the 
East  has  not  made  a  pleasant  impression  on  the  public,  but  it  must 
be  borne  in  mind  that  the  railroad  companies  in  the  East  are  still 
seriously  congested  with  an  unusual  amount  of  freight  traffic,  the 
movement  of  which  is  more  vital  to  the  country  than  the  movement  of 
passengers,  and  that  the  weather  conditions  for  the  past  two  weeks 
have  seriously  impeded  railroad  operations. 


WAGE   COMMISSION. 

January  18,  1918. 
Director  General  of  Railroads  McAdoo  announced  this  afternoon 
the  appointment  of  a  Railroad  Wage  Commission  to  make  a  general 
investigation  of  the  subject  of  railroad  wages  in  the  United  States. 
The  Director  General  named  as  members  of  the  commission  Franklin 
K.  Lane,  Secretary  of  the  Interior ;  Charles  C.  McChord,  member  of 
the  Interstate  Commerce  Commission;  J.  Harry  Covington,  chief 
justice  of  the  Supreme  Court  of  the  District  of  Columbia;  and  Wil- 
liam R.  Willcox,  of  New  York.  The  members  of  this  commission  are 
all  men  who  have  had  experience  in  dealing  with  the  problems  re- 
ferred to  it. 

(99) 


100 

Secretary  Lane  was  for  eight  years  a  member  of  tlie  Interstate 
Commerce  Commission,  and  was  also  the  chairman  of  the  board, 
consisting  of  himself,  the  Secretary  of  Labor,  Daniel  Willard,  and 
Samuel  Gompers,  Avhieh  brought  about  the  agreement  between  the 
railroads  ancl  the  four  railroad  brotherhoods  to  accept  the  Adam- 
son  Law. 

Commissioner  ]McChord  was  formerly  chairman  of  the  Kentucky 
railroad  commission.  During  his  eight  years  of  service  as  a  member 
of  the  Interstate  Commerce  Commission  he  has  been  largely  con- 
cerned with  those  regulatory  laws  which  directly  affect  railroad  em- 
ployees, and  during  1916  had  charge  of  the  car-shortage  problems. 

Judge  Covington,  prior  to  his  appointment  as  a  Federal  judge  in 
1911,  was  a  Member  of  Congress,  serving  on  the  Committee  on  Inter- 
state and  Foreign  Commerce,  the  committee  which  considers  all  rail- 
Avay  legislation  in  the  House  of  Representatives.  He  was  the  Presi- 
dent's personal  representative  last  summer  on  a  mission  to  the  Pacific 
Coast  States  in  connection  with  labor  troubles  existing  there. 

]Mr.  AVillcox  is  the  present  chairman  of  the  Eepublican  national 
conunittee.  After  serving  as  postmaster  of  New^  York  City,  he  was 
appointed  by  Gov.  Hughes  chairman  of  the  New  York  public  service 
commission  for  the  first  district,  and  served  upon  that  body  for  six 
years. 

The  commission  has  been  appointed  vdth  a  vieAv  to  determining  the 
Avages  for  the  different  classes  of  labor  upon  the  railroads.  It  will 
begin  its  work  at  once,  and  will  report  to  the  Director  General,  giving 
its  recommendations  in  general  terms  as  to  changes  that  should  be 
made.    Upon  this  report  the  Director  General  will  make  a  decision. 

In  dealing  with  such  a  complex  problem  as  railroad  wages,  the 
powers  of  the  commission  must  be  very  broad  if  it  is  to  report  a  satis- 
factory result.  It  is  authorized  to  make  a  general  investigation  of 
the  whole  field  of  railroad  labor,  the  compensation  of  persons  in  the 
service  of  the  railroads,  the  relation  of  the  railroad  wages  to  wages  in 
other  industries,  the  conditions  in  different  parts  of  the  country,  the 
special  emergency  respecting  wages  to  wages  which  exist  at  this  time 
owing  to  war  conditions,  and  the  high  cost  of  living,  and  the  relation 
bctAveen  the  different  classes  of  railroad  labor. 

The  creation  of  this  connnission  is  the  culmination  of  a  large  num- 
ber of  complaints  and  demands  of  employees  which  have  been  pending 
before  the  railroad  managers  for  some  time  past.  These  complaints 
and  demands  were  brought  to  the  attention  of  the  Director  General 
shortly  after  the  assumption  of  the  operation  of  the  railroads  by  the 
Government.  They  came  in  all  forms,  from  various  groups  of  unor- 
ganized employees  of  the  railroads. 


lOi 

President  Wilson  sent  the  folloAvin*;-  letter  to  each  nienil)er  of  the 

commission : 

May  I  not  assure  you  of  my  appreciatiou  of  your  acceptauce  of  tlie  invltatioi? 
extended  to  you  by  tlie  Director  CJeneral  of  llailroads  to  serve  as  a  member  of 
the  more  important  commission  he  has  appointed  to  inquire  into  the  question  of 
wages  of  railroad  employees  in  the  United  States? 
With  warm  regard, 

Cordially  and  sincerely  yours. 

WooDRow  Wtlsox. 


DUTIES    OF    REGIONAL    DIRECTORS. 

February  4,  1918. 

Dear  Sirs:  Tlie  followinc:  is  an  ontline  of  the  functions  of  the 
Eegional  Directors.  I  shall  be  glad  if  you  Ayill  bring  to  ni}"  attention 
from  time  to  time  any  points  which  are  not  clear  to  you  or  which  you 
think  call  for  modification  or  extension. 

Broadly  speaking,  I  wish  to  give  you  power  to  direct  railroad  oper- 
ations in  your  territory  so  as  to  handle  traffic  with  the  least  conges- 
tion, the  highest  efficiency,  and  the  greatest  expedition.  As  far  as  is 
consistent  with  these  objects  you  will,  of  course,  keep  down  operating 
expenses. 

I  have  put  responsibility  upon  you  for  the  entire  operating  situa- 
tion. I  mention  the  following  simply  as  few  illustrations  of  the  mat- 
ters which  are  thus  intrusted  to  you : 

You  should  see  that  terminals  are  used  to  the  best  advantage  and 
that  such  changes  in  established  practices  are  made  as  will  bring  this 
about. 

Where  minor  capital  expenditures  are  needed  to  establish  new  con- 
nections for  the  better  use  of  terminals,  you  will  endeavor  to  get  some 
or  all  of  the  interested  companies,  by  their  Aoluntary  action,  to  ar- 
range therefor,  and  will  refer  to  me  cases  of  expenditures  which 
can  not  be  so  arranged. 

You  will  order  such  changes  in  routing  of  traffic,  using  any  lines 
or  parts  of  lines  in  combination  as  v\ill  avoid  uneconomical  routes 
and  congestion  of  particular  terminals  or  railroads,  giving  due  con- 
sideration to  shippers'  interests. 

The  Commission  on  Car  Service  has  been  replaced  by  the  Car 
Service  Section  of  the  Division  of  Transportation  (the  personnel  re- 
maining largely  the  same).    The  Car  Service  Section — 

(a)  "Will  have  charge  of  all  matters  pertaining  to  car  service,  including  the  relo- 
cation of  freight  cars  as  between  individual  railroad  and  regions. 

(ft)  Will  issue  instructions  through  the  llegional  Director  providing,  on  appli- 
cation of  proper  governmental  authorities,  for  preference  in  car  supply  and 
movement. 

(c)  Will  receive  from  railroads  such  reports,  periodical  or  special,  as  it  may 
require  in  order  to  keep  fully  informed  with  respect  to  car  service,  embargo  or 
transportation  conditions. 


102 

(f7)  Must  be  promptly  informed  of  all  embargoes  placed,  modified  or  removetl, 
and  will,  from  time  to  time,  recommend  such  embargo  policies  and  exemptions  as 
the  needs  of  the  Government,  seasonal  requirements,  or  other  circumstances  may 
demand. 

(e)  Will  deal  directly  with  railroads  with  respect  to  matters  within  its  juris- 
diction, and  will  keep  the  Regional  Directors  advised  of  all  instructions  or  orders 
in  whicli  they  are  concerned. 

You  will  keep  fully  advised  as  to  the  situation  concerning  the  use  of 
locomotives,  repairs  to  locomotives,  amount  of  shop  capacity,  and 
amount  of  shop  labor  available  for  locomotive  repairs.  You  will  have 
power  to  promote  the  general  good  of  the  transportation  situation  in 
your  region  by  making  transfers  of  locomotives  from  one  railroad  to 
another  or  of  locomotives  needing  repairs  from  one  shop  to  another 
and  transfer  of  shop  labor  from  one  shop  to  another.  Such  transfers, 
should,  of  course,  have  reference  to  any  agreements  between  labor  and 
the  company  affected  and  be  made  with  just  regard  to  the  welfare  and 
rights  of  employees.  You  will,  of  course,  have  like  duty  and  power 
respecting  car  repairs. 

As  to  labor,  you  have  been  advised  of  the  appointment  of  the 
Eailroad  Wage  Commission.  The  general  policy  as  to  all  labor  is 
that  there  shall  be  no  interruption  of  work  because  of  any  contro- 
wages  and  living  conditions  will  have  the  consideration  of  the  Rail- 
road Wage  Commission. 

Pending  action  by  me  upon  the  report  of  that  commission  there 
ought  not  to  be  any  radical  change  in  existing  practices  without  sub- 
mitting the  matter  to  me  for  approval.  But  it  should  be  understood 
that  the  usual  methods  of  settling  by  agreement  ordinary  grievances 
and  complaints  shall  continue  as  heretofore  and  that  the  companies 
are  free  to  negotiate  as  heretofore  with  their  employees  and  are  ex- 
pected to  observe  faithfully  existing  agreements  with  their  em- 
ployees. In  cases  of  doubt  about  new  negotiations  with  employees, 
the  advice  of  the  Director  General  should  be  sought. 

You  should  bear  in  mind  that  labor  has  the  very  natural  feeling 
that  railroad  managers,  although  now  working  for  the  Government 
and  on  Government  account,  necessarily  continue  the  same  concep- 
tion of  and  attitude  toward  labor  problems  that  they  had  when  act- 
ing under  private  management.  I  am  told  that  labor  will  have  a 
natural  suspicion  that  any  unfavorable  action  taken  by  railroad 
managers  indicates  a  purpose  on  their  part  to  make  governmental 
control  a  failure  and  to  use  it  for  promotion  or  vindication  of  their 
own  theories. 

For  these  reasons,  great  care  should  be  taken  to  avoid  anything 
having  even  the  appearance  of  arbitrary  action,  and  it  will  be  ex- 
pedient, at  least  at  the  outset  and  until  the  matter  shall  take  more 
definite  shape,  not  to  dispose,  unless  by  mutual  agreement,  of  any 


103 

labor  claims  involving  large  questions  of  policy  without  first  sub- 
mitting the  matter  to  me. 

In  the  centra]  organization  in  Washington  I  propose  to  have  a 
labor  man  as  a  member  of  my  staff  who  will  give  his  special  attention 
to  labor  problems,  not  onl}"^  to  the  problems  of  wages  and  conditions 
but  also  to  the  problem  of  aiding  the  railroads  in  obtaining  sufficient 
labor  and  of  bringing  about  a  better  understanding  between  officers 
and  employees.  The  morale  and  esprit  de  corps  of  officers  and  men 
should  be  brought  to  the  highest  standards. 

There  are  several  matters  involving  broad  questions  of  public  policy 
concerning  which  I  wish  you  to  make  careful  studies  and  report  to 
me  with  your  recommendations. 

1.  To  what  extent  if  at  all  should  additional  passenger  service  be 
discontinued  in  order  to  save  coal,  labor,  locomotives,  and  shop  capac- 
ity for  freight  service.  In  arriving  at  any  recommendations  on  this 
matter  it  is  very  important  to  give  due  consideration  to  public  conven- 
ience. It  is  quite  probable  that  I  shall  wish  to  take  the  matter  up 
informally  with  State  railroad  commissions  as  to  any  reductions  in 
service  which  you  think  should  be  made.  In  dealing  with  such  mat- 
ters the  local  point  of  view  must  be  considered  and  the  State  commis- 
sions afford  a  useful  instrumentality  for  obtaining  this  point  of  view, 
and  also,  to  the  extent  that  we  can  act  in  harmony  with  the  commis- 
sion's views,  for  satisfying  local  public  sentiment  as  to  what  is  done. 
So  far  the  State  commissions  have  evinced  a  commendable  spirit  of 
cooperation. 

2.  I  wish  you  also  to  make  careful  study  of  the  extent  to  which  (a) 
freight  solicitation  should  be  discontinued  or  diminished  and  freight 
and  passenger  agencies,  freight  officers,  ticket  offices,  etc.,  discontinued 
or  consolidated ;  (h)  the  extent  to  which  traffic  officials,  soliciting  or 
otherwise,  should  be  transferred  to  other  service  and  to  what  other 
service  they  should  be  assigned;  and  (e)  extent  to  which,  if  at  all,  any 
portion  of  these  forces  should  be  released  from  service. 

3.  I  wish  you  also  to  make  a  study  of  •(«)  the  extent  to  which  du- 
plications of  service  can  be  avoided,  both  passenger  and  freight;  (b) 
extent  to  which  fast  freight  service  can  be  discontinued  or  slowed 
down;  (c)  extent  to  which  less-than-carload  service  can  be  consoli- 
dated or  diminished ;  at  all  times  having  reasonable  consideration  for 
the  public  convenience. 

4.. I  would  like  to  have  your  Adews  as  to  the  extent  to  which  the 
making  of  purchases  can  be  unified  either  for  the  entire  coimtr}^,  or 
for  the  separate  regions,  or  for  j^arts  thereof,  accompanying  it  with  a 
statement  of  the  advantages  which  you  think  would  result  from  such 
unification. 

o.  The  extent  to  which  standardization  may  be  effected  in  your 
region  on  the  railroads  in  your  territory  (a)  with  respect  to  locomo- 
tives— the  various  types  which  will  be  required  to   effect   the    best 


104 

standardization;  (h)  freight  cars,  open  and  box  cars,  and  the  various 
types  which  will  be  best  adapted  for  use  in  your  territory. 

Your  recommendations  should  be  made  in  reference  to  the  adoption 
to  the  same  standards  throughout  the  United  States  except  in  so  far 
as  local  conditions  can  make  specific  types  or  designs  desirable  to 
meet  the  peculiarities  of  such  local  conditions. 

G.  In  general,  I  shall  be  glad  to  have  you  make  a  study  of  the  extent 
to  which  various  classes  of  operating  expenses  can  be  curtailed  or 
eliminated  on  account  of  present  conditions  of  Government  possession 
and  control.  Of  course,  you  understand  that  by  virtue  of  General 
Order  No.  6  it  will  be  necessary  for  local  associations  to  make  appli- 
cations for  the  Director  General's  approval  if  it  is  desired  that  they 
continue  to  l)e  supported  out  of  operating  revenues.  If  any  such  ap- 
plications are  made  to  you,  I  shall  be  glad  to  have  your  recommenda- 
tions in  regard  thereto,  being  guided  by  the  principle  that  no  func- 
tions should  be  carried  on  by  associations  whose  expenses  are  charge- 
able against  operating  revenues  except  such  functions  as  are  reason- 
ably necessary  under  the  existing  condition  of  Government  possession 
and  control,  and  that  only  the  expense  appropriate  to  such  functions 
should  be  paid  out  of  operating  revenues. 

On  all  these  matters  I  shall  appreciate  your  specific  recommenda- 
tions at  the  earliest  practicable  date. 

In  dealing  with  this  whole  subject  it  is,  of  course,  important  for 
you  to  view  the  matter,  and  to  get  the  various  railroad  executives  of 
railroads  in  your  jurisdiction  to  view  the  matter,  from  the  entirely 
new  standpoint  that  all  the  railroads  now  constitute  a  single  system 
to  be  operated  so  as  to  secure  the  maximum  of  transportation  with  the 
minimum  of  waste,  and  that  the  fact  that  a  readjustment  will  mean 
that  a  particular  railroad  will  lose  certain  sorts  of  traffic  must  be  dis- 
regarded as  it  is  not  sufficient  reason  why  the  readjustment  should  not 
be  made,  if  in  other  respects  it  is  in  the  public  interest. 

Certain  general  matters  are  having  consideration  here  and  some- 
Avhat  later  will  probably  be  taken  up  with  j^ou.  Examples  of  these 
matters  are  additions  and  betterments,  what  equipment  not  already 
ordered  needs  to  be  provided.  I  shall  be  greatly  interested  in  any  sug- 
gestions which  you  can  make  to  me  on  these  matters  at  the  present 
time  and  from  time  to  time. 

You  will  of  course  have  the  right  to  continue  or  discontinue  or  cre- 
ate such  local  committees  or  i-cpresentatives  as  you  think  i)roper  to  in- 
sui-e  the  best  results  at  particular  terminals  or  in  particular  subdivi- 
sions of  your  territory.  Doubtless  at  many  important  terminals  you 
Avill  find  it  advantageous  to  select  some  exceptionally  able,  aggressive, 
and  tactful  railroad  representative  to  take  charge  of  the  terminal  and 
to  coordinate  with  the  railroad  activities,  the  activities  of  merchants, 
coal  dealers,  truckmen,  etc.,  so  as  to  secure  the  best  possible  results  in 
the  loading  and  unloading  of  cars. 


105 

I  take  it  that  voiir  communications  to  the  railroads  in  yonr  region 
should  be  to  the  respective  presidents,  receivers,  or  other  chief  operat- 
ing officers  with  such  modifications  of  that  practice  as  you  may  think 
advisable,  arranging,  however,  in  case  of  such  modifications,  that 
the  president,  receiver,  or  other  chief  operating  officer  fully  under- 
stands the  practice  Mhich  you  pursue. 

Pending  the  further  shaping  of  the  Avork,  there  are  various  general 
subjects  which  you  should  refer  to  this  office  and  in  all  such  cases  I 
shall  appreciate  your  suggestions  or  recommendations.  Among  such 
subjects  are  financial  problems  and  legal  problems. 

I  wish  to  emphasize  that  I  do  not  consider  it  expedient  for  the 
Regional  Directors  to  undertake  to  establish  without  my  approval, 
policies  of  a  public  character,  i.  e.,  policies  which  substantially  affect 
the  character  of  service  rendered  the  public  or  the  rights  of  the 
public. 

Substantial  reduction  of  passenger  service  is  an  example  of  this 
character.  It  is  impracticable  to  define  these  matters  clearly,  but 
practical  definition  will  evolve  gradually  as  cases  arise.  Meanwhile 
doubtful  questions  should  be  submitted  to  me. 

The  controlling  principle  is  that  the  Government  being  now  in 
possession  and  control,  it  is  important  for  the  Director  General,  as 
the  direct  representative  of  the  Government,  to  have  a  voice  in  de- 
ciding matters  which  primarily  affect  the  public,  because  we  can  not 
expect  that  the  public  will  be  entirely  satisfied  to  have  these  matters 
settled  by  the  railroad  managers,  which  in  the  public  estimation  will 
still  be  regarded  as  imbued  with  the  attitude  of  private  management, 
no  matter  how  disinterestedly  those  managers  may  be  endeavoring  to 
represent  the  public  interest  and  nothing  else. 

Generally  speaking,  you  will  develop  your  organization  as  you 
think  necessary,  but  it  seems  to  me  that  in  any  event  you  will  need  a 
competent  traffic  representative  who  should  be  selected  Avith  the  con- 
currence of  Mr.  Edward  Chambers,  who  Avill  be  in  charge  of  the  Di- 
vision of  Traffic  Avith  headquarters  at  Washington.  I  think  you  had 
better  treat  your  organization  as  tentative  until  you  have  submitted 
the  organization  plan  to  me,  as  I  may,  upon  consicleration  of  tentative 
plan,  Avish  to  make  some  suggestion  upon  the  subject. 
Ver}'  sincereh'  Amours, 

(Signed)  W.  G.  McAdoo, 

Director  General  of  RailroaiU. 
A.  H.  Smith,  Esq., 

Regwnal  Director,  New  Yorl\  X.  Y. 
R.  H.  AiSHTON,  Esq., 

Regional  Director,  Chicago,  III. 
C.  H.  Markham,  Esq.. 

Regional  Director,  Atlanta,  Ga. 


106 


GENERAL  SUMMARY  OF  WEATHER  OVER  THE  DISTRICTS  OF  THE 
UNITED  STATES  TO  EASTWARD  OF  THE  MISSISSIPPI  RIVER 
DURING  THE  WINTER  1917-18  TO  DATE. 

February  6,  1918. 

Cool  weather  set  in  much  earlier  than  usual  over  the  eastern  por- 
tion of  the  country,  September,  on  the  whole,  averaging  several  de- 
grees lower  than  the  normal,  while  October  was  cold  throughout 
nearly  the  entire  month,  almost  winter  conditions  prevailing  through- 
out the  regions  from  the  Ohio  Yalley  northward  to  Canada.  There 
was  some  improvement  during  November  as  to  temperature,  although 
over  much  of  the  territory  from  the  Mississippi  River  eastward  the 
month  was  several  degrees  cooler  than  normal. 

There  was  a  general  absence  of  severe  storms  in  November ;  in 
fact,  the  month  was  decidedly  dry  and  there  was  much  less  than  the 
normal  of  snowfall.  As  a  result,  outdoor  work  of  all  kinds  was 
possible  to  an  unusual  degree  and  under  most  favorable  conditions. 

Early  in  December  marked  cold  weather  overspread  all  eastern 
districts  of  the  United  States,  and,  save  for  occasional  breaks,  the 
cold  was  continuous  throughout  the  month.  The  latter  part  of  the 
month  was  particularly  cold  over  the  more  eastern  and  northeastern 
districts,  the  temperature  falling  to  40°  below  zero  or  lower  over 
the  northern  portions  of  New  York  and  New  England,,  and  the 
month,  as  a  whole,  was  among  the  coldest  during  the  past  50  years. 

There  was  little  snow  on  the  ground  at  the  beginning  of  December, 
but  near  the  end  of  the  first  decade  heavy  falls  occurred  from  the  lower 
Ohio  Valley  northeastward  to  New  England  and  generally  in  the 
Lake  region,  the  depths  in  immediate  Ohio  Valley  ranging  from  8  to 
14  inches,  while  at  points  in  the  upper  Lakes  region  the  depths  were 
nearly  twice  as  great. 

Toward  the  end  of  the  second  decade  additional  snow  fell  over  the 
Appalachian  Mountains  and  to  the  eastward,  at  which  time  all  central 
and  northern  districts  from  the  Mississippi  River  eastward  were  snow- 
bound, the  depths  ranging  from  6  to  10  inches  from  the  Ohio  Valley 
eastward  nearly  to  the  coast,  while  farther  north  the  depths  were 
from  10  to  20  inches  or  more,  and  so  Iv.idly  drifted  as  to  interfere  ma- 
terially with  traffic. 

A  moderation  in  the  cold  during  the  early  part  of  the  third  decade 
of  December  caused  most  of  the  snow  in  the  Ohio  Valley  districts  to 


107 

disappear,  and  there  was  a  substantial  reduction  in  the  depth  over 
the  A]3pahichian  Mountains  and  to  the  eastward. 

For  December,  as  a  wliole,  the  snowfall  was  unusuall^'  heavy  in  the 
Ohio  Valle}^  and  in  most  districts  to  the  northeastward.  In  some  sec- 
tions of  this  area  it  was  from  two  to  four  times  greater  than  the  nor- 
mal, being  at  many  points  the  heaviest  experienced  since  reliable 
records  have  been  kept — a  period  of  about  30  years — and  in  some  lo- 
calities more  snow  fell  in  December  than  usually  occurs  during  the 
entire  winter.  As  far  south  as  northern  Tennessee  the  monthly  totals 
ranged  from  15  to  23  inches. 

The  latter  part  of  December  was  cold,  but  without  material  snow- 
fall, but  early  in  January  moderate  falls  occurred  from  the  Mississippi 
Valley  eastward,  and  again  about  the  7th  heavy  snows  occurred  from 
the  middle  Mississippi  Valley  northeastward  to  the  Lakes,  the  falls 
in  portions  of  central  Illinois  and  around  the  southern  end  of  Lake 
Michigan  ranging  from  8  inches  to  nearly  2  feet.  High  winds  ac- 
companied the  snow  and  much  drifting  resulted,  which  greatly  inter- 
fered with  traffic.  During  the  early  part  of  the  second  decade  of 
January,  additional  snow  occurred  over  wide  areas,  and  at  the  middle 
of  the  month  the  gi-eater  part  of  the  country  was  snow  covered.  In 
the  Ohio  Valley  and  Lakes  region  the  fall  was  again  heavy,  and  the 
depth  of  the  snow  cover  ranged  from  10  to  15  inches  or  more. 

Throughout  January,  unusually  cold  weather  continued  over  all 
districts  from  the  Mississippi  Valley  eastward,  but  particularly  in 
the  central  and  southern  districts,  where  the  average  temperature 
ranged  from  10°  to  14°  below  the  normal. 

The  total  snowfall  for  January,  1918,  like  that  of  the  preceding 
month,  was  much  heavier  than  usual  in  the  central  districts  from  the 
Mississippi  Eiver  eastward.  The  falls  were  particularly  heavy 
around  the  southern  end  of  Lake  ^Michigan  and  thence  southward 
to  and  over  the  southern  tributaries  of  the  Ohio.  In  the  great  min- 
ing sections  from  southwestern  Virginia  northeastward  to  Pennsyl- 
vania and  thence  westward  to  Missouri  and  Arkansas  the  total  snow- 
fall for  the  month  ranged  from  1  to  2  feet  or  more,  and  in  the  vicin- 
ity of  Chicago  the  totals  were  from  3  to  nearly  5  feet.  At  times  dur- 
ing the  month  heavy  winds  drifted  the  snow  badly.  From  the  Mis- 
sissippi Valley  eastward  the  total  snowfall  for  January,  1918,  was 
unusually  heavy,  being  in  most  cases  from  two  to  four  times  as  much 
as  is  usually  received  during  that  month. 

For  the  period  December  1,  1917,  to  January  31,  1918,  the  average 
temperature  over  the  districts  from  the  Mississippi  Valley  eastward 
has  been  among  the  lowest  of  record  for  an  equal  period  of  time  in 
the  past  50  years. 

In  this  connection  it  is  interesting  to  note  that  in  the  far  western 
districts  of  the  United  States  the  weather  during  the  winter  so  far 


lOS 

has  been  uniisiially  mild  and  there  has  been  little  snow ;  in  fact,  the 
lack  of  precipitation  in  parts  of  California  had  already  produced 
serions  results,  and  absence  of  any  matei-ial  accumulated  snowfall  in 
the  mountains  is  causing  serious  concern  for  the  agricultural  outlook 
during  the  crop-gi-owing  season. 


ORGANIZATION    OF    FINANCE    SECTION. 

March  7,  1918. 
Director  General  McAdoo  has  approved  the  following  plan  sub- 
mitted by  the  director  of  the  Division  of  Finance  and  Purchases  for 
the  organization  of  that  division,  substantially  as  follows: 

FINANCE  SECTION. 

The  director  of  the  division  will  be  assisted  in  the  work  of  investi- 
gating and  providing  plans  to  meet  the  financial  requirements  of  the 
railroads  throughout  the  country,  whether  these  needs  relate  to  the 
taking  up  and  renewal  of  maturing  obligations  and  the  issuance  of 
new  securities,  or  providing  for  betterments  and  additions,  by  an  ad- 
visory committee  of  three  men,  experienced  in  finance,  who  will  be 
selected,  one  from  the  North,  one  from  the  West,  and  one  from  the 
South.  These  men,  whose  names  will  be  announced  later,  will  serve 
the  Government  without  compensation,  and  will  have  offices  in  Wash- 
ington. 

The  gross  earnings  from  operations  of  the  railroads  of  the  country 
for  the  calendar  year  1917  amounted  to  something  over  $4,000,000,000, 
but  the  requirements  for  new  capital,  outside  of  revenue  from  earn- 
ings, for  ncAV  equipment,  betterments,  and  additions,  have  usually 
called  for  from  $250,000,000  to  $750,000,000  per  annum,  according  to 
the  activity  of  business  and  the  condition  of  the  money  market. 

ITKCIIASING   SECTION. 

In  the  matter  of  purchases  for  the  railroads,  which  will  amount  to 
between  $1,000^000,000  and  $2,000,000,000  per  annum,  the  director  of 
the  division  Mill  be  assisted  by  an  advisory  committee  of  three,  which 
will  be  composed  of  the  general  purchasing  agents  or  vice  presidents 
in  charge  of  purchases  of  three  leading  railroad  systems,  who  will 
l)e  detailed  to  Washington  for  this  work,  under  the  supervision  of 
the  director  of  the  division. 

There  will  also  be  constituted  three  additional  committees;  these 
committees  to  be  composed  of  three  or  more  general  purchasing 
agents,  oivmen  experienced  in  this  work,  to  be  known  as  the  regional 
purchasing  committees,  with  headquarters  in  Xew^  York,  Chicago,  and 
Atlanta,  in  touch  with  tlie  regional  directors  of  these  three  districts. 


109 

All  purchases  of  locomotives,  passenger,  freight,  and  other  cars, 
and  steel  rails  vrill  be  made  directly  through  the  office  of  the  director 
of  purchases. 

Fuel. — In  the  New  England  territory  fuel  purchases  will  be  made 
by  a  special  committee  appointed  by  the  regional  director,  under  the 
direction  of  the  Washington  office.  In  other  sections,  each  railroad 
■will  be  expected  to  handle  its  requirements,  under  the  immediate  di- 
rection of  the  respective  regional  purchasing  committees,  cither  col- 
lectively with  other  companies,  or  separately,  as  may  be  directed  by 
that  committee.  The  details  of  all  contracts  already  made  and  of  all 
other  contracts  as  made  will  be  scrutinized  and  checked  by  the  re- 
gional purchasing  committees,  which  will  act  under  the  general  direc- 
tion of  the  central  committee. 

Crossfies  and  linnber. — Crossties  and  lumber  which  can  be  obtained 
along  the  lines  of  the  respective  roads  will  be  negotiated  for  and  pur- 
chased through  the  purchasing  department  of  each  road,  under  the 
supervision  of  the  regional  purchasing  committees.  Crossties  needed 
by  the  various  roads  which  can  not  be  obtained  on  their  own  lines  will 
be  purchased  through  the  Washington  office. 

All  other  supplies  needed  for  current  operations  will  be  purchased, 
for  the  time  being,  through  the  purchasing  departments  of  the  re- 
spective roads,  but  all  contracts  for  periods  of  six  months  or  longer 
must  be  approved  by  the  regional  committees  before  completion. 

Information  as  to  the  prices  paid  for  all  supplie's  will  be  furnished 
monthly  by  all  roads  to  the  regional  purchasing  committees,  so  that 
the  prices  paid  by  each  road  for  all  articles  may  be  carefully  com- 
pared and  checked,  both  as  to  prices,  standards,  qualities,  and  places 
of  delivery. 

The  regional  purchasing  committees  will  address  themselves  as 
soon  as  possible  to  consideration  of  the  opportunities  for  standardiz- 
ing and  consolidating  purchases  of  every  kind  that  may  admit  of 
such  treatment,  with  a  view  to  increasing  efficiency  and  economy. 

The  regional  purchasing  committees  will  submit  to  one  another 
and  to  Washington,  as  information  and  for  criticism,  full  statistics 
as  to  cost  prices  of  materials  used  in  railroad  operations,  and  these 
prices  will  be  carefully  compared  and  checked. 

The  names  of  the  advisory  committee  in  the  Section  of  Finance, 
and  of  the  advisory  committee  in  the  Section  of  Purchases,  and  the 
names  of  the  three  regional  committees  v>ill  be  announced  in  a  few 
days. 

UNIVERSAL   INTERLINE   BILLING. 

March  19,  1918. 
Director  General  ]McAdoo  to-da}^  issued  an  order  establishing  uni- 
versal interline  billing  between  all  railroads  subject  to  Government 


110 

control.  Tliis  order  also  contemplates  a  simplified  distribution  of 
revenues,  and  tlie  effect  will  be  a  reduction  of  expense  and  gi^eater 
convenience  iii  the  waybilling  and  handling  of  traffic  and  also  in  the 
accounting  department. 

Ordinaril}'  freight  in  passing  from  one  line  to  another  is  waybilled 
to  the  junction  point  and  rewaybilled  at  the  junction  point. 

The  division  of  the  through  rate  often  involves  arbitraries,  and  is 
more  or  less  complicated.  The  making  of  these  divisions  and  the 
subsequent  checking  of  them  to  exactness  involves  a  great  deal  of 
labor  and  accounting. 

The  interline  waybill  is  issued  at  the  point  of  origin  and  accom- 
panies the  shipment  to  destination,  no  matter  how  many  carriers  are 
involved.    This  saves  time  in  the  movement  of  the  traffic  itself. 

It  is  also  proposed  to  simplify  the  matter  of  divisions  so  that  most 
of  the  accounting  work  which  now  attaches  to  the  making  of  these 
divisions  will  be  avoided. 

This  is  a  reform  which  has  been  long  under  discussion  by  carriers, 
but  which  could  not  be  established  under  independent  control. 


CONSOLIDATIONS. 

April  9,  1918. 
Director  General  McAdoo  has  issued  the  following  instructions  to 
the  Regional  Directors : 

1.  Discontinue  the  separate  city  freight  or  passenger  offices  where  the  public 
may  be  adequately  served  at  the  depot.  This  applies  particularly  to  the  smaller 
cities. 

2.  Consolidate  or  group  all  city  ticket  offices,  placing  the  union  office  in  con- 
venient location  where  rental  is  reasonable,  providing  sufficient  space  to  prop- 
erly accommodate  the  public. 

3.  Cancel  all  arrangements  with  tourist  or  other  similar  agencies  for  solicita- 
tions of  passenger  traffic  or  sale  of  tickets. 

4.  Discontinue  all  off-line  traffic  offices. 

5.  Employees  released  as  result  of  above  to  be  assigned  to  other  duties  to  the 
extent  possible.  Some  now  employed  in  off-line  offices  will  be  needed  by  local 
line  to  strengthen  its  traffic  forces  in  order  to  properly  care  for  the  additional 
work  which  will  result  from  the  above  changes. 

The  functions  and  services  formerly  performed  by  the  off-line  offices  in  pro- 
tecting the  needs  of  the  public  will  be  incorporated  in  the  offices  of  the  initial 

lines. 

Separate  off-line  traffic  offices  were  created  by  the  various  transportation  in- 
terests on  account  of  existing  keen  competition  for  passenger  and  freight  traffic, 
and  were  primarily  headquarters  for  soliciting  agents  who  were  stationed  in  all 
commercial  districts  for  the  purpose  of  protecting  the  interests  of  the  carrier  by 
whom  thoy  were  employed.  Now  there  is  no  competition,  which  eliminates  need 
for  solicitiition  by  the  individual  caniers.  The  iiulicy  is  one  of  efficiency  with 
all  possible  retrenchment  and  econf>my  consistent  with  protecting  the  best  in- 
terests of  the  public. 


Ill 

The  employees  released  fi'om  their  present  duties  as  a  result  of  this  are  to 
be  assigned  to  other  duties,  as  far  as  possible,  with  the  same  road.  Some  now- 
employed  in  ofE-line  offices  will  be  needed  by  local  lines  to  strengthen  other 
traffic  forces  to  properly  take  care  of  the  additional  work  eutailed  upon  the 
initial  lines  account  of  this  change.  In  making  this  readjustment,  it  is  intended 
to  woi-k  as  little  hardship  as  possible  upon  the  employees  concerned.  Many  of 
these  men  have  been  in  the  service  of  their  respective  lines  for  long  periods,  and 
their  railroad  insurance  and  pension  rights  will  be  protected. 

No  community  will  be  deprived  of  adequate  sources  of  information  and  advice 
as  to  matters  connected  with  passenger  and  freight  service.  It  will  be  necessary 
for  the  lines  directly  serving  each  locality  to  see  that  their  offices  are  manned 
and  equipped  to  furnish  the  needed  information  and  advice.  This  to  include  the 
issuance  of  through  bills  of  lading,  quotation  of  rates,  passenger  reports  of  cars 
en  route,  advice  to  prospective  passengers,  and  all  other  necessary  information 
heretofore  furnished  by  the  off-line  offices. 


LAKE  LINE  SERVICE. 

April  18,  1918. 

Director  General  McAdoo  to-day  established  a  lake  line  service 
between  Chicago  and  Milwaukee  in  order  to  relieve  the  car  situation 
as  much  as  possible.  Cars  that  have  been  held  up  on  western  rail- 
roads by  the  congestion  on  central  railroads  will  be  immediately 
released  with  the  opening  of  lake  navigation  and  the  loads  moved 
east  by  the  way  of  lake  and  railroad  lines  east  of  Buffalo,  thereby 
releasing  equipment  to  the  western  railroads  for  use  in  their  ter- 
ritory and  relieving  the  railroads  in  the  central  freight  territory  of 
the  saving  of  power,  fuel,  and  cars  that  can  be  devoted  to  other 
business. 

Shippers  of  heavy  staple  commodities  from  the  east,  such  as  sugar, 
coffee,  and  manufactured  articles,  will  take  advantage  of  this  service 
as  it  will  be  of  a  steady  and  regular  movement.  There  will  be  as- 
signed to  this  lake  line  service  seven  large  modern,  electric-lighted 
steamships,  and  it  is  intended  to  work  day  and  night  shifts  at  the 
terminal  points  so  that  the  ships  can  be  turned  rapidly  and  afford 
the  greatest  possible  relief  to  the  railroads. 

It  will  be  known  as  the  Lehigh  Valley  Transportation  Co.  and  wnll 
serve  all  eastern  trunk  lines  over  a  common  terminal  at  Buffalo. 
Two  of  the  ships  assigned  were  owned  by  the  Lehigh  Valley  Rail- 
road, and  the  other  five  were  chartered  from  the  Great  Lakes  Transit 
Corporation.  Additional  ships  will  be  added  as  the  service  requires. 
All  rail  rates  will  prevail  in  both  directions,  so  that  in  case  of  con- 
gestion on  the  railroads  the  freight  can  be  immediately  diverted  to 
the  lake  and  given  continuous  movement  to  destination;  the  rates 
include  marine  insurance,  and  the  service  should  be  of  great  assistance 
to  the  shipping  public. 


112 

B.  &  O.  TRAINS  INTO  PENNSYLVANIA  STATION. 

April  2-2,  1918. 

Director  Genoral  McAdoo  to-day  issued  the  following  order  effec- 
tive April  28,  12.01  a.  m. : 

Baltimore  &  Ohio  trains  between  Washington  and  Xcw  York  will 
be  transferred  and  run  into  the  Pennsylvania  station  at  Thirty- 
fourth  Street  via  the  following  route :  Eun  on  the  present  tracks  to 
Bound  Brook,  X.  J.,  then  switching  over  to  the  Lehigh  Valley  on  that 
road  to  the  Pennsylvania  Eailroad  at  Xewark  Junction,  and  from 
there  over  the  Pennsylvania  through  the  tubes  to  the  Thirty-fourth 
Street  station. 

This  rerouting  of  the  Baltimore  &  i)h\o  trains  will  tend  to  utilize 
them  to  capacit,y,  thereby  assisting  the  Penns^dvania  between  Xew 
York  and  Washinglon  and  affording  the  public  gi'eater  facilities. 


STANDARD    LOCOMOTIVES. 

April  30,  1918. 

Director  General  McAdoo,  of  the  United  States  Railroad  Admin- 
istration, announced  to-day  that  he  has  just  awarded  contracts  for 
immediate  construction  of  1,025  modern  locomotives.  Deliveries  are 
to  begin  in  July  and  continue  monthly  during  the  remainder  of  the 
year. 

The  locomotives  are  of  six  standard  types,  one  heavy  and  one  light, 
one  of  each  type,  coveriug  both  freight  and  passenger  service,  and 
var3dng  in  weight  from  290,000  pounds  to  510,000  pounds.  The  order 
involves  an  expenditure  of  approximately  $60,000,000.  The  engines 
will  be  allotted,  u]>on  completion,  to  the  various  railroad  systems 
where  they  are   most  needed. 

The  awarding  of  this  contract  marks  the  establishment  by  the  Gov- 
ernment of  tlie  standard  type  of  locomotives,  specifications  for  which 
have  been  de\eloped  and  perfected  by  committees  of  experts,  who  for 
many  weeks  have  devoted  mucli  time  and  study  to  the  subject. 

The  six  standard  types  of  locomotives,  tAvo  sizes  of  each  class,  are 
expected  eventually  to  supersede  the  many  miscellaneous  types  and 
varieties  of  locomotives  now  in  service,  embracing  engines  l)uilt  ac- 
cording to  500  or  more  varying  specifications.  This  is  the  first  time 
that  an}'  real  forward  step  has  been  taken  looking  to  the  Avide  stand- 
ardization of  locomotive  engines. 

The  contracts  Averc  awarded  on  terms  much  more  favorable  to  the 
railroads  than  the  bids  originally  submitted  b}'  the  builders. 

The  order  was  distributed  app)'Oximately  one-half  to  the  American 
Locomotive  Go.  and  the  remainder  to  the  Baldwin  Locomotive  Works. 


113 

ELIMINATION   OF  PASSENGER   TRAINS. 

Mat  14, 1918. 

Director  General  McAdoo  has  approved  the  recommendation  of 
Regional  Director  Aishton  for  a  reduction  in  the  mileage  of  trans- 
continental passenger  trains  starting  from  Chicago,  aggregating 
11.728,000  miles  per  annum,  and  it  is  proposed  that  the  revised 
schedules  shall  take  effect  on  June  2. 

This  economy  has  been  accomplished  by  abandoning  duplicate 
service  between  Chicago  and  the  Pacific  coast  cities  and  assigning  to 
the  short  and  direct  routes  to  each  city  the  fastest  through  service. 
Under  this  plan  the  Atchison,  Topeka  &  Santa  Fe  will  be  the  pre- 
ferred route  to  Los  Angeles,  Chicago  &  Xorth  Western-Union  Pa- 
cific-Southern Pacific  to  San  Francisco,  Burlington-Xorthern  Pacific 
to  Portland,  and  the  Chicago,  Milwaukee  &  St.  Paul  to  Seattle.  The 
fast  trains  will  make  the  run  in  72  hours  to  each  city.  There  will  be 
a  secondary  train  carrying  all  classes  of  equipment  scheduled  in  78 
hours.  The  other  transcontinental  roads  will  operate  such  service 
as  may  be  necessary  to  accommodate  their  intermediate  travel  on 
reasonable  schedules. 

On  the  same  date  the  mail  schedules  will  be  adjusted  so  that  there 
will  be  a  parity  of  mail  service  between  Chicago  and  each  of  the 
rival  commercial  centers  on  the  Pacific  coast.  The  fast  mail  trains 
will  cover  the  distance  between  Chicago  and  Pacific  coast  terminals 
in  65  hours. 

The  public  will  be  adequately  served  under  the  new  arrangement, 
although  it  is  probable  that  more  upper  berths  will  be  sold  in  the 
future  than  in  the  past. 

The  passenger  committee  for  the  western  district  has  now  started 
working  on  the  rearrangement  of  the  schedules  to  the  Southwest, 
where  important  economies  can  also  be  effected  Avithout  affecting 
public  convenience. 

APPOINTMENT    OF    FEDERAL    MANAGERS. 

May  21,  1918. 
In  view  of  the  direct  responsibility  for  the  operation  of  the  rail- 
roads of  the  country  placed  upon  Director  General  McAdoo  by  the 
act  of  CongTess  and  by  the  proclamations  of  the  President,  he  has 
been  unable  to  escape  the  conclusion  that  it  will  be  advisable  to  place 
in  direct  cliarge  of  each  property  for  operating  purposes  a  represent- 
ative to  be  known  as  the  Federal  manager.  Avho  will  report  to  the 
Regional  Director.  As  far  as  practicable,  this  Federal  manager  will 
be  chosen  from  the  operating  officers  of  the  particular  property,  wdio 
are  therefore  entirely  familiar  with  its  employees  and  with  its  con- 
105889°— 19 8 


114 

ditions.  Except  so  far  as  may  be  necessary  to  meet  the  emergency 
conditions  which  compel  the  Government  to  take  control  of  the  rail- 
roads, the  Federal  manager  of  each  railroad  will  endeavor  to  avail 
himself  to  the  fullest  extent  of  the  advantages  incident  to  the  opera- 
tion of  the  particular  railroad  as  a  unit  and  the  preservation  of  its 
identity.  This  is  believed  to  be  of  essential  importance,  not  only  to 
secure  the  best  results  during  the  period  of  Government  control,  but 
also  to  give  the  greatest  degree  of  reassurance  to  the  officers  and  em- 
ployees that  the  railroad  careers  upon  which  they  have  entered  will 
not  be  narrowed,  but,  if  anything,  will  be  broadened,  and  to  give 
the  greatest  possible  reassurance  to  the  stockholders  that  their  just 
interests  in  the  properties  will  be  respected  and  that  nothing  will  be 
needlessly  done  to  have  even  the  appearance  of  impairing  their  just 
rights. 

"WTiile  in  this  way  the  responsibility  for  the  operation  of  the 
property  will  be  directly  to  the  Regional  Directors  and  not  to  the 
boards  of  directors,  it  is  the  purpose  of  the  Director  General  to  ac- 
cord to  the  boards  of  directors  and  their  representatives  the  fullest 
opportunity^  to  keep  advised  as  to  the  operation  and  improvement  of 
the  properties  and  to  maintain  with  the  Director  General  and  the 
Regional  Directors  the  fullest  interchange  of  views  as  to  what  is  in 
the  best  interest  of  the  Government  and  of  the  stockholders. 

In  the  development  of  this  policy  the  Regional  Directors  and  also 
the  Federal  managers  will  be  required  to  sever  their  official  relations 
with  the  particular  companies  and  to  become  exclusive  representatives 
of  the  United  States  Railroad  Administration. 

The  first  moves  in  the  inauguration  of  this  policy  will  be  through 
the  creation  of  two  new  regions  to  be  known  as  the  "Allegheny 
Region  "  and  the  "  Pocahontas  Region." 

The  Allegheny  Region  will  consist,  broadly,  of  the  Pennsylvania 
lines  east  of  and  including  Pittsburgh  and  Erie,  Baltimore  &  Ohio, 
east  of  Pittsburgh  and  Ohio  River  including  Pittsburgh  terminals, 
Bessemer  &  Lake  Erie  Railroad,  Cumberland  Valley  Railroad,  Cen- 
tral Railroad  of  New  Jersey,  Coal  &  Coke  Railroad,  Philadelphia  & 
Reading  Railway,  Western  Maryland  Railway,  Cumberland  &  Penn- 
sylvania, and  Pittsburgh  &  Lake  Erie.  This  region  will  be  placed  in 
charge  of  Mr.  C.  H.  Markham  as  Regional  Director  (who  has  resigned 
his  connections  with  the  Illinois  Central  and  other  companies),  who 
will  have  offices  in  Philadelphia. 

The  Pocahontas  Region  will  consist  of  the  Chesapeake  &  Ohio  Rail- 
way east  of  Columbus,  Cincinnati,  and  Louisville,  the  Norfolk  & 
Western  Railway,  and  the  Virginian  Railway >  including  the  terminals 
of  all  lines  at  Hampton  Roads.  With  the  exception  of  the  Allegheny 
and  Pocahontas  Regions,  the  Eastern  Region  will  remain  as  originally 
defined  with  Mr.  A.  H.  Smith  as  Regional  Director,  and  district  di- 


115 

rectors  under  Regional  Director  Smith  will  be  appointed  for  New 
England  and  for  that  portion  of  the  Eastern  Region  west  of  Pittsburgh 
and  Ohio  River  and  south  of  the  Erie  main  line.  The  selection  of  the 
Regional  Directors  for  the  Pocahontas  Region  and  for  the  Southern 
Region,  succeeding  Mr.  Markham,  as  well  as  of  the  two  new  district 
directors  under  Regional  Director  Smith  will  be  announced  later. 

The  same  policy  wil  be  applied  from  time  to  time  as  rapidly  as  may 
be  convenient  in  other  parts  of  the  country,  always  with  the  greatest 
possible  regard  for  all  the  interests  affected  and  with  a  view  to  pre- 
serving intact,  as  far  as  reasonably  practicable,  the  operating  organi- 
zations of  the  companies. 

ONE-CENT-A-MILE  RATE  FOR  SOLDIERS. 

May  25,  1918. 
Director  General  McAdoo,  realizing  that  the  payment  of  the  full 
railroad  fare  means  a  serious  hardship  to  our  soldiers  and  sailors  who 
desire  to  visit  their  homes  before  going  overseas,  has  ordered  that 
as  soon  as  necessary  details  can  be  completed  soldiers  and  sailors  of 
the  United  States  forces,  when  furloughed  and  traveling  at  their 
own  expense,  will  be  granted  a  rate  of  approximately  1  cent  per  mile. 
This  fare  will  be  available  on  delivery  to  ticket  agents  of  certificates 
signed  by  commanding  officers.  Such  certificates  of  standard  form 
will  be  prepared  and  distributed  with  the  utmost  promptness. 


RATE    INCREASE. 

Mat  27,  1918. 
Director  General  McAoo  sent  the  following  telegram  to  the  presi- 
dents of  all  State  railroad  commissions: 

Apparent  increases  in  operating  expenses  aggregating  $830,000,000  to 
$960,000,000  for  the  calendar  j-ear  1918  as  compared  with  the  calendar  year 
1917,  and  consisting  principally  of  increases  in  wages  and  cost  of  coal,  fuel  oil, 
and  other  materials  and  supplies,  leave  uo  escape  from  the  conclusion  that 
the  public  interest  requires  immediate  and  substantial  increases  in  the  rates  for 
practically  all  services,  passenger  and  freight,  now  performed  by  the  railroads 
under  Federal  control,  and  therefore  in  effect  performed  by  the  United  States 
Government  itself,  and  that  there  is  no  other  reasonable  way  to  defray  the  ex- 
penses of  Federal  control  and  operation,  since  it  is  clear  that  those  additional 
burdens  should  not  be  forced  upon  the  Federal  Treasury  at  this  time,  when  it  is 
already  so  heavily  taxed  by  the  needs  of  our  own  Government  for  war  purposes 
and  the  essential  demands  for  credit  of  the  gallant  nations  associated  with  us 
in  this  great  struggle  for  liberty.  In  these  circumstances,  it  seems  clear  that 
the  duty  which  rests  upon  me  by  virtue  of  the  act  of  Congress  of  March  21,  1918, 
and  by  virtue  of  the  President's  proclamation,  should  be  performed  by  the  in- 
itiation without  delay  of  increased  rates  to  meet  the  situation. 

In  dealing  with  this  supremely  important  subject,  I  have  given  much  thought 
to  the  question  as  to  the  practical  way  of  availing  myself  of  the  knowledge  and 


116 

cooperation  whicli  ;it  all  times  have  been  so  cordially  put  at  mj'  disposal  by  the 
State  commissions.  The  act  of  Congress  gives  me  no  opportunity  to  share  with 
the  State  commissions  the  responsibility  whicli  rests  upon  the  United  States 
Railroad  Administration  for  the  financial  residts  to  the  United  States  Govern- 
ment of  the  operation  of  the  railroads.  In  fact,  the  Government  of  the  United 
States  has  assumed  control  of  the  railroads  and  the  undivided  responsibility  for 
their  operation,  and  that  entire  responsibility  has  been  placed  upon  me.  I  have 
als4>  felt  that  the  exigencies  of  the  situation  are  so  serious  as  not  to  admit  of 
postponement  of  action  until  full  opportunity  couUl  be  extended  to  the  commis- 
sion in  all  the  States  to  discuss  the  important  problems  involved  and  to  advise 
me,  in  advance  of  official  action,  as  to  liow  my  responsibility  could  best  be  dis- 
charged. 

In  these  circumstances,  it  has  seemed  clear  that  the  responsibility  should  be 
promptly  met  in  the  manner  contemplated  by  the  act  of  Congress,  and  then,  in 
the  inevitable  readjustments  which  always  must  come  in  a  matter  of  such  far- 
reaching  character,  to  obtain  the  advice  and  suggestions  of  the  State  commissions 
and  to  take  advantage  of  their  views  in  order  that  in  the  final  consideration  of 
the  subject  by  the  Interstate  Commerce  Commission,  that  body  may  have  the 
benefit  of  the  most  intelligent  and  equitable  sifggestions  as  to  the  readjustments 
needed  to  accomplish  the  largest  measure  of  relative  justice  while  at  the  same 
time  obtaining  the  additional  operating  revenues  which  the  United  States  Gov- 
ernment must  liave  in  order  to  discharge  the  responsibilities  which  it  has  as- 
sumed for  railroad  operation. 

Acting  upon  this  view,  I  am  initiating  substantial  increases  in  practically  all 
rates,  passenger  and  freight,  and  am  arranging  to  have  delivered  to  you  at  once 
a  copy  of  the  announcement  on  this  subject.  I  earnestly  hope  that  the  procedure 
thus  adopted,  and  which  is  unavoidal>le,  will  have  your  support,  and  that  you 
will  give  the  Government  your  full  cooperation  in  perfecting  the  rates  thus 
initiated.  I  also  bespeak  your  patriotic  cooperation  in  getting  the  public  to  sup- 
port in  a  patriotic  spirit  and  as  a  war  measure  these  substantial  rate  increases 
which  are  the  outgrowth  of  war  conditions  and  which  in  iirinciple  and  in  sub- 
stance are  indispensable  to  enable  the  Federal  Government  to  discharge  the 
transportation  functions  which  are  essential  to  the  successful  conduct  of  the  war. 

W.  G.  McAdoo, 
Director  Goicral  of  Railroads. 


EXPRESS   COMPANIES. 

Ju>K  22,  1918. 

The  express  contract  Ijetween  Director  General  McAdoo  and  the 
four  principal  express  companies  (Adams,  American,  Wells  Fargo, 
and  Southern),  the  basis  of  which  -was  announced  by  the  Director 
General  on  May  28,  was  signed  by  representatives  of  the  express 
companies  yesterday  and  by  Walker  D.  Hines,  Acting  Director  Gen- 
eral, to-day.  The  complete  terms  of  the  contract  were  connnunicated 
to  the  Director  General,  who  is  away  from  the  city  obtaining  a  brief 
rest,  and  received  his  personal  approval. 

The  contract  provides  for  the  carrying  on  of  the  express  business 
for  all  of  the  railroads  imder  Federal  control,  and  the  new  express 
company  now  established  will  be  the  Director  General's  agent  for. 
carrying  on  the  express  business.    As  announced  on  ^May  28,  the  char- 


117 


acter  of  the  service  and  of  the  rates  will  be  under  the  Director  Gen- 
eral's control  and  subject  to  hiitiation  by  him.  The  contract  will  re- 
main in  force  during  the  period  of  Federal  control,  unless  previously 
abrogated.  The  contract  provides  that  it  can  be  canceled  by  either 
side  upon  six  months"  notice  after  being  in  effect  for  four  years. 


SHORT-LINE  RAILROADS. 

June  29,  1918. 
Under  the  act  of  March  21,  1918,  it  becomes  necessary  for  the 
United  States  Railroad  Administration,  prior  to  July  1,  1918,  to  ex- 
ercise the  responsibility,  created  by  section  11  of  that  act,  of  deter- 
mining what  railroads  or  parts  of  railroads  it  is  not  needful  or  de- 
sirable shall  continue  under  Federal  control. 

So  far  as  it  has  been  practicable,  in  such  a  complicated  matter, 
to  develop  the  facts  up  to  the  present  time,  it  has  become  apparent 
that  there  are  large  numbers  of  the  sliorter  railroads  whose  Federal 
control  is  not  needful  or  desirable. 

The  Eailroad  Administration  has  therefore  provided  that  all  such 
railroads  be  relinquished,  except  in  cases  where  it  has  already  been 
ascertained  that  it  is  needful  and  desirable  that  such  railroads  shall 
be  under  Federal  control. 

In  taking  this  action  the  Eailroad  Administration  is  mindful  of 
the  paramount  importance  of  preserving  unimpaired  the  local  public 
service  performed  by  the  railroads  which  may  thus  be  relinquished 
and  is  al^o  solicitous  that  no  injustice  shall  be  done  to  the  owners  of 
such  railroads.  It  may  be  that  the  creation  of  Federal  control  over 
railroad  systems  in  general  will  tend  to  change  unfavorably  the  situ- 
ation of  many  of  these  smaller  railroads,  unless  special  care  shall  be 
taken  to  avoid  such  unfavorable  results,  with  consequences  detri- 
mental both  to  the  local  public  service  and  to  the  just  interests  of 
the  railroad  owners. 

To  avoid  these  consequences  and  to  preserve  in  every  reasonable 
respect  a  status  for  the  railroads  so  relinquished  as  favorable  as  that 
which  they  enjoyed  during  the  three-year  test  period  (the  three  years 
ended  June  30, 1917),  great  care  will  be  taken  to  see  that  the  railroads 
so  relinquished  are  given  fair  divisions  of  joint  rates,  are  insured  a 
reasonable  car  supply — circumstances  considered — and  are  protected 
against  any  undue  disturbance  in  the  routing  of  traffic. 

In  order  to  make  sure  that  a  continuing  study  and  supervision 
shall  be  provided  for  the  carrying  out  of  the  policy  thus  outlined, 
there  will  be  created  at  once  in  the  Railroad  Administration's  Divi- 
sion of  Public  Service  and  Accounting  a  Short  Line  Railroad  Sec- 
tion, the  manager  of  which  will  be  charged  with  the  special  duty  of 


118 

ascertaining  what  is  necessary  in  order  to  give  as  to  these  matters 
reasonable  protection  to  the  railroads  relinquished. 

It  may  be  that  instances  will  appear  where  Federal  control  of  rail- 
roads now  relinquished  is  in  fact  needful  or  desirable.  In  such  cases 
there  will  be  no  hesitation  in  taking  the  action  necessary  to  put  such 
railroads  under  Federal  control. 

In  general,  it  is  the  definite  policy  of  the  Railroad  Administration 
to  see  that  all  short-line  railroads  receive  fair  and  considerate  treat- 
ment. 

I  approve  the  above  policy  and  announcement. 

(Signed)         Woodrow  Wilsox. 


UNIVERSAL    MILEAGE. 

JuLT  3,  1918. 

Director  General  McAdoo  to-day  authorized  the  following  an- 
nouncement : 

There  will  be  placed  on  sale,  on  or  about  August  1,  a  universal 
mileage  scrip  at  the  basic  rate  of  3  cents  per  mile. 

Each  coupon  of  the  ticket  will  represent  the  value  of  3  cents  and 
can  be  used  for  the  payment  of  sleeping  and  dining  car  charges  and 
transportation  of  excess  baggage,  as  well  as  transportation  charges 
on  all  trains  on  railroads  under  Government  control. 

The  advantages  of  this  simple  form  of  ticket  are  obvious  and  the 
change  is  expected  to  relieve  the  pressure  on  ticket  agencies  at  busy 
centers. 

The  war  tax  will  be  collected  by  conductors  at  the  time  of  the  pre- 
sentation of  the  mileage  scrip. 


INLAND    WATERWAYS. 

July  11,  1918. 

The  much-discussed  question  of  developing  a  system  of  transporta- 
tion on  the  inland  waterways  provided  by  the  Mississippi  and  Black 
Warrior  Rivers  has  been  settled  by  Director  General  McAdoo  through 
the  appointment  of  M.  J.  Sanders,  of  New  Orleans,  as  "  Federal 
manager  of  the  Mississippi  and  Warrior  Waterways." 

The  Director  General  has  received  full  reports  on  this  subject  from 
the  Committee  on  Inland  Watenvays,  from  the  western  and  south- 
em  regional  directors,  and  from  Director  Prouty  and  Interstate  Com- 
merce Commissioner  Meyer,  all  of  whom  have  investigated  the  mat- 
ter at  the  Director  GeneraFs  request. 

Mr.  Sanders,  the  newly-appointed  Federal  manager,  will  have  gen- 
eral direction  of  development  of  the  necessary  facilities  and  the  con- 
struction of  requisite  barges,  tugs,  etc.,  that  will  be  used  on  the  Mis- 
sissippi River  south  of  St.  Louis  and  on  the  Black  Warrior  River 
route  between  the  Birmingham  district  in  North  Alabama  and  Mo- 


119 

bile  and  Xew  Orleans;  the  latter  city  being  reached  via  the  Black 
Warrior  River,  Mobile  Baj^,  the  Gulf  of  Mexico  and  Lakes  Borgne 
or  Ponchartrain  with  their  connecting  canals. 

Mr.  Sanders  has  been  manager  of  the  Leyland  Steamship  Lines 
for  the  ports  of  New  Orleans,  Mobile,  and  Pensacola  for  the  last  30 
years.  This  steamship  service  is  the  most  important  traversing  the 
Gulf  of  Mexico.  It  includes  some  of  the  largest  freight  steamers  iu 
the  Gulf  trade,  with  as  many  as  100  sailings  annually  from  the  ports 
named. 

Mr.  Sanders  has  had  extensive  business  connections  with  all  the 
railroads  serving  the  Gulf  ports  as  well  as  with  the  existing  river 
transportation  service.  He  was  president  for  several  years  of  the 
City  Bank  &  Trust  Co.  of  Xew  Orleans,  and  president  of  the  Mobile 
Liners  (Inc.).  He  is  director  of  the  Lake  Borgne  Canal  Co.,  of  the 
New  Orleans  Ship  Wright  Co.,  and  of  the  Louisiana  Southern  Rail- 
way. He  was  also  president  for  several  years  of  the  New  Orleans 
Progressive  Union,  now  the  Association  of  Commerce,  and  has  just 
finished  a  two-year  term  as  president  of  the  New  Orleans  Board  of 
Trade,  of  which  he  is  still  a  director. 

In  March  last  he  became  a  member  of  the  Inland  Waterways  Com- 
mittee above  referred  to.  This  connnittee  was  appointed  by  the  Di- 
rector General  to  "  make  a  prompt  investigation  and  report  as  soon 
as  practicable  a  definite  plan  describing  the  extent  and  the  manner 
in  which  additional  use  may  be  made  of  the  internal  waterways  for 
the  economical  and  expeditious  movement  of  traffic  of  the  country, 
so  as  to  relieve  or  supplement  the  railways  under  existing  war  con- 
ditions." 

Mr.  Sanders  strongly  believes  that  the  time  has  come  when  the 
enormous  expenditure  of  the  Government  in  the  development  and 
improvem.ent  of  the  Mississippi  and  the  Black  Warrior  Rivers  should 
be  made  to  yield  some  return  through  the  application  of  progressive 
methods,  modernized  facilities,  equitable  freight  rates,  and  fair  dif- 
ferentials, and  that  the  pressure  upon  the  railway  facilities  of  the 
Nation  will  be  sensibly  reduced  by  the  adoption  of  such  a  policy.  He 
will  have  the  opportunity  in  the  position  to  which  he  has  been  ap- 
pointed to  make  a  thoroughgoing  test  of  the  possibilities  of  these 
waterwavs  under  favorable  conditions. 


FIRE   PROTECTION. 

July  16,  1918. 
The  United  States  Railroad  Administration  announced  to-day  the 
organization  of  a  new  section,  imder  the  supervision  of  the  Director 
of  Finance  and  Purchases,  which  shall  be  known  as  the  Section  of 
Insurance  and  Fire  Protection. 


120 

As  heretofore  announced,  it  will  be  the  general  policy  of  the  Eail- 
roacl  Administration  to  do  away  with  the  fire-insurance  policies  here- 
tofore carried,  and  to  haA^e  the  Government  itself  stand  directly  re- 
sponsible to  the  railroads  for  fire  losses  of  property  in  Government 
possession. 

This  section  will  therefore  deal  prunarily  with  the  prevention  of 
fibres  through  rigid  and  intelligent  inspection,  and  by-insisting  upon 
the  observance  of  rules  and  regulations  intended  to  prevent  the  un- 
necessary destruction  of  property  by  fire. 

The  Insurance  Section  will  have  the  benefit  of  the  assistance  of  an 
advisory  committee  of  men  experienced  and  skilled  in  the  business  of 
fire  insurance,  whose  names  will  hereafter  be  announced.  Mr. 
Charles  N.  Eambo,  of  Philadelphia,  superintendent  and  secretary  of 
the  Mutual  Fire,  Marine  &  Inland  Insurance  Co.,  has  been  selected 
as  manager  of  the  section  and  will  resign  from  his  present  position. 

Mr.  Rambo  brings  to  his  work  20  years  of  experience  in  the  insur- 
ance business,  and  for  the  past  15  years  has  devoted  his  energies  to 
the  Mutual  Fire,  Marine  &  Inland  Insurance  Co.,  wdiich  was  organ- 
ized by  and  in  the  interest  of  the  railroad  companies  for  the  purpose 
of  mutual  insurance  and  of  reducing  fire-insurance  costs  and 
premiums. 

The  Insurance  Section  Avill  provide  a  force  of  skilled  inspectors 
in  each  region  whose  duty  it  will  be  to  see  that  the  rules  and  regula- 
tions intended  to  reduce  fire  losses  are  rigidh^  observed.  The  insur- 
ance inspectors  now  employed  b}^  the  various  railroads  will  be  util- 
ized as  far  as  desirable. 

This  section  will  also  have  general  charge  of  the  adjustment  of 
fire  losses. 


EXPRESS    FRANKS. 

July  29,  1918. 

Under  instructions  from  Director  General  McAdoo  the  American 
Kailway  Express  Co.,  the  new  company''  established  under  the  con- 
ti-act  betw^een  the  Director  General  and  the  four  principal  express 
companies  of  the  country,  has  canceled  all  express  franks  previously 
in  use  and  adopted  the  policy  of  issuing  no  new  franks. 

In  the  past  free  service  was  gi^'en  by  the  express  companies  to  a 
large  number  of  people,  not  only  express  officers  and  employees,  but 
also  the  officers  of  railroad  companies  and  others.  As  a  result  of  this 
practice  a  great  many  express  franks  were  in  existence  and  a  large 
quantity  of  goods  was  carried  free  of  charge. 

After  careful  consideration,  the  Director  General  decided  that  it 
was  proper  and  Avise  to  eliminate  this  free  service  entireh^,  and  as  a 
result  all  matter  now  carried  by  express  is  paid  for. 


121 
PASSENGER  SERVICE. 

STATEMENT   TO   THE   PUBLIC. 

Washington,  D.  C,  August  20, 1018. 

Complaints  have  reached  me  from  time  to  time  of  overcrowded 
trains  and  unsatisfactory  conditions  prevailing  in  some  sections  of 
the  country  in  passenger-train  service.  I  feel  certain  that  there  are 
grounds  for  some  of  these  complaints,  but  I  am  sure  the  public  will 
be  interested  to  know  that  the  reasons  are  twofold : 

First,  the  great  number  of  troops  now  being  handled  over  the 
various  railroads  between  the  homes  and  the  cantonments,  between 
the  different  cantonments  and  then  to  the  seaboard,  is  making  ex- 
traordinary demands  upon  the  passenger-car  and  sleeping-car  equip- 
ment of  the  country.  This  has  caused  a  scarcity  of  day  coaches  and 
sleeping  cars  which  it  is  impossible  to  remedy  immediately. 

Secondly,  the  increased  demands  upon  track  and  terminal  facili- 
ties for  the  transportation  of  the  tremendous  amounts  of  coal,  food 
supplies,  raw  materials,  and  other  things  required  for  military  and 
naval  operations,  as  well  as  for  the  support  of  the  civil  population  of 
the  country,  force  the  largest  possible  curtailment  of  passenger-train 
service.  The  movements  of  troops  and  war  materials  are,  of  course, 
of  paramount  importance  and  must  be  given  at  all  times  the  right 
of  way. 

It  was  hoped  that  the  increase  in  passenger  rates  recently  made 
would  have  the  wholesome  effect  of  reducing  unnecessary  passenger 
traffic  throughout  the  country.  The  smaller  the  number  of  passen- 
o-ers  who  travel,  the  greater  the  number  of  locomotives  and  cars  and 
the  larger  the  amount  of  track  and  terminal  facilities  that  will  be 
freed  for  essential  troop  and  war-material  movements.  Engineers, 
firemen,  and  other  skilled  laborers  will  also  be  released  for  service  on 
troop  and  necessary  freight  trains. 

Among  the  many  patriotic  duties  of  the  American  public  at  this 
time  is  the  duty  to  refrain  from  traveling  unnecessarily.  Every  man, 
woman,  and  child  who  can  avoid  using  passenger  trains  at  this  time 
should  do  so.  I  earnestly  hope  that  they  will  do  so.  Xot  only  will 
they  liberate  essential  transportation  facilities  which  are  necessary 
for  war  purposes,  but  they  will  save  money  which  they  can  invest  in 
Liberty  Bonds  and  thereby  help  themselves  as  well  as  their  country ; 
and  the  fewer  who  travel,  the  more  ample  the  passenger-train  serv- 
ice will  be. 

I  may  add  that  consistently  with  the  paramoimt  demands  of  the 
war.  ever}'  possible  effort  is  being  made  by  the  Railroad  Administra- 
tion to  supply  the  largest  possible  amount  of  comfortable  and  prompt 
passenger-train  service. 

W.  G.  McAdoo, 

Director  General  of  Railroads. 


122 

USE  OF  PENNSYLVANIA  RAILROAD  TERMINALS  BY   LEHIGH 
VALLEY    RAILROAD. 

September  9,  1918. 

Director  General  McAdoo  announced  to-day  that,  effective  Septem- 
ber 15,  the  Xew  York  and  Jersey  City  terminals  of  the  Pennsylvania 
Railroad  will  be  used  by  the  Lehigh  Valley  Eailroad.  The  present 
use  of  the  Communipaw  terminal  of  the  Central  Railroad  of  New 
Jersey  by  Lehigh  Valley  passenger  trains  will  be  discontinued  the 
same  date. 

It  is  proposed  to  send  Lehigh  Valley  trains  Nos.  5  and  6,  7  and  8, 
9  and  10,  29  and  30.  and  11  and  28  into  the  Pennsylvania  station  at 
New  York,  while  the  remainder  of  the  Lehigh  Valley  passenger  serv- 
ice, consisting  of  trains  Nos.  1,  27,  33,  40,  22,  and  34,  will  use  the  Jer- 
sey City  terminal  of  the  Pennsylvania. 

Passengers  from  downtown  New  York  for  trains  leaving  the  Penn- 
sylvania uptown  station  will  use  the  Hudson  &  Manhattan  Railroad, 
trains  connecting  at  Manhattan  Transfer.  Hudson  &  Manhattan 
trains  and  Pennsylvania  ferry  service  also  will  be  used  by  passengers 
for  the  Lehigh  Valley  trains  leaving  from  the  Pemisylvania's  Jersey 
City  station.  No  excursion  business  of  the  Lehigh  Vallej^  will  be 
handled  out  of  the  Pennsylvania  stations  at  New  York  or  Jersey  City, 
and  the  Lehigh  Valley  will  handle  its  troop  trains  at  Communipaw. 


GRAIN    MOVEMENT. 

September  16,  1918. 

Director  General  McAdoo  to-day  authorized  the  following  state- 
ment : 

The  conditions  existing  in  the  grain  trade  this  season  have  brought 
about  an  unusual  situation,  due  principal!}^  to  two  factors,  namely,  an 
abundant  wheat  crop  and  a  stabilized  price  Avhich  removes  any  incen- 
tive to  hold  wheat  back  on  the  farms  for  price  fluctuations. 

As  a  result  of  this  situation  the  grain  has  been  shipped  as  f  a^t  as  har- 
vested, and  as  a  matter  of  fact  nearly  100,000  more  cars  of  gi*ain  have 
been  handled  by  the  railroads  to  date  this  season  than  in  the  same 
period  last  year.  Naturally  this  tremendous  flow  of  grain  has  over- 
taxed the  storage  facilities.  At  the  present  time  not  only  are  the 
seaboard  elevators  filled  to  capacity  awaiting  export,  but  the  elevators 
at  the  primary  markets  are  practically  unable  to  furnish  an}^  more 
storage,  and  should  the  gi'ain  be  allowed  to  continue  to  flow  without 
control  the  only  possible  result  would  be  the  use  of  cars  for  storage, 
resulting  not  only  in  congestion  of  tracks  and  terminals  but  in  put- 
ting the  cars  out  of  business  for  the  other  transportation  needs  of  the 
country. 


123 

To  meet  this  situation  the  Raih^oad  Administration,  in  conjunction 
with  the  Food  Administration,  has  arranged  to  control  grain  move- 
ments throughout  the  country  and  to  transport  all  grain  under  what 
is  known  as  the  "  permit ""  sj-stem  in  charge  of  committees  m  the  dif- 
ferent grain  zones,  which  means  that  shippers  will  be  furnished  with 
cars  and  permitted  to  ship  to  the  capacity  of  all  the  markets  to  take 
care  of  and  promptly  unload  the  grain.  This  not  only  will  prevent 
congestion  of  the  tracks  and  tying  up  of  equipment  but  will  result  in 
a  regular  movement  of  the  grain  traffic  and  the  best  distribution  of 
equipment,  with  the  effect  of  the  greatest  efficiency,  which,  of  course, 
results  directly  to  the  greatest  benefit  to  the  grain  producer  and  the 
least  disturbance  of  his  business  arrangements. 

It  is  interesting  to  know  that  already  75  per  cent  of  the  winter 
wheat  has  moved  from  the  farms,  while  the  spring  wheat  and  oats  are 
just  beginning  to  move,  and  of  the  total  wheat  crop  it  is  estimated 
that  about  43  per  cent  had  already  reached  the  markets,  which  is  far 
in  excess  of  the  usual  amount  at  this  time  of  the  year. 


COAL    MOVEMENT. 

September  27,  1918. 

Director  General  McAdoo  to-day  authorized  the  following: 

At  the  present  time  the  rules  under  which  coal  mines  are  rated 
and  the  cars  distributed  vary  considerably  on  different  railroads.  Re- 
sult is  that  it  has  been  almost  impossible  to  gauge  car  supply  for 
coal  loading  throughout  the  country  unless  one  is  fully  conversant 
with  the  details  of  the  individual  railroad's  rules.  The  attached 
circular  outlines  uniform  rules  for  rating  for  car  distribution  pur- 
poses for  coal  mines  other  than  anthracite,  loading  coal  at  mine  tip- 
ples, and  the  rules  governing  the  distribution  of  cars  to  coal-mine 
tipples  other  than  anthracite.  The  rules  were  issued  to-day  to  all 
coal-loading  railroads. 

Under  the  new  rules  mines  will  be  supplied  each  month  with  cars 
on  the  basis  of  shipping  ability  as  demonstrated  by  their  performance 
for  the  previous  month.  Each  road  will  work  on  the  same  rule  and 
the  result  will  be  that  if  the  percentage  rate  of  distribution  varies  it 
will  be  known  whether  or  not  a  road  is  short  of  cars  because  its 
figures  will  be  compiled  on  the  same  basis  as  every  other  road's. 

These  rules  ha^•e  been  in  the  course  of  preparation  for  the  past  two 
months,  during  which  time  the  Railroad  Administration  has  ob- 
tained the  views  of  representative  transportation  men  of  important 
bituminous  coid-loading  roads  as  well  as  the  A'iews  of  the  Fuel 
Administration,  the  National  Coal  Association,  and  individual 
operators. 


124 

MILITARY  MEALS. 

October  5,  1918. 

Director  General  McAdoo  to-day  authorized  the  following: 

The  United  States  Railroad  Administration  and  the  AVar  and  Navy 
Departments  have  recently  agreed  upon  an  arrangement  for  furnish- 
ing meals  in  dining  cars  and  eating  stations  to  officers  and  enlisted  men 
Avhich  is  proving  very  popular  with  men  in  the  service.  The  War 
and  Xavy  Departments  Lave  raised  the  meal  allowance  to  Y5  cents. 
In  some  instances  the  former  allowance  was  50  cents  and  in  others 
60  cents. 

Orders  have  been  issued  that  a  substantial  and  appetizing  table 
d'hote  meal  be  furnished  for  this  sum.  The  weight  of  each  article 
on  the  menu  will  equal  or  exceed  the  Army  and  Navy  rations. 

The  arrangement  will  apply  to  officers  and  men  traveling  at  their 
own  expense  as  well  as  to  those  Avho  are  traveling  on  Government 
orders,  and  includes  inducted  men  on  their  way  to  enter  the  service. 

Typical  menus  for  breakfast,  luncheon,  and  dinner  are  shown  below  : 

Break  fast. — Fruit  or  cereal,  liam  or  bacon,  egg8,  potatoes,  l»rt>aa  and  butter, 
tea,  coffee,  or  milk. 

Luncheon. — Soup,  relish,  roast,  stew,  or  boiled  meat,  two  vegetables  (potatoes 
and  oue  other),  bread  ami  butter,  tea,  coffee,  or  milk,  dessert. 

Dinner. — Soup,  relish,  roast,  stew,  or  boiled  meat,  two  vegetables  (potatoes 
and  one  other),  bread  and  butter,  tea,  coffee,  or  milk,  dessert. 


CONTACT    WITH    PUBLIC. 

October  21,  1018. 
Director  General  McAdoo  sent  the  following  letter  to  each  one  of 
tlie  Regional  Directors: 

To  the  end  that  its  patrons  may  fully  understand  the  purpose,  plans,  and 
general  policy  of  the  United  States  Railroad  Administration,  and  that  all  em- 
ployees may  appreciate  their  part  in  taking  care  of  the  needs  of  the  public,  it  is 
very  desirable  that  the  Regional  Directors  shall  arrange  occasionally  for  direct 
contact  between  the  officers  of  the  railroad  and  the  public  served  by  its  line. 
This  contact  shoidd  not  only  occur  at  the  larger  cities  which  were  formerly 
regarded  as  highly  competitive  points  but  also  at  those  points  which  are  local  to 
and  seived  only  by  the  one  line  of  railroad. 

Without  limiting  your  discretion  it  is  suggested  that  the  object  may  be  suc- 
cessfully accomplished  by  once  in  a  while  arranging  trip  of  oi)crallng,  account- 
ing, and  traflic  ofhcors  together,  who  shall  visit  city  officials,  boards  of  trade, 
chambers  of  commerce,  and  important  industries  of  each  city  or  town  for  tlie 
purpose  of  informing  the  public  why  it  was  necessary  in  order  to  meet  war 
necessity  to  do  things  in  a  certain  way,  also  explain  the  advantages  which  have 
accrued  and  will  accrue  in  the  future  by  tlie  improvements  in  transportation 
conditions  worked  out  by  the  Railroad  Administration  and  which  are  bound  to 
be  continued  pernuuiently  because  of  their  efficiency,  economy,  and  expedition 
in  the  handling  of  traffic. 

An  opportunity  will  thus  also  be  afforded  for  advising  tlie  public  as  to  the 
organization  in  each  region  for  the  conduct  of  business  and  direct  them  to  the 


125 

proiXM"  ollice  with  \\iiicli  to  takt'  ii]i  tl^^  various  matters  of  rates,  claims,  car 
supply,  service,  or  other  needs  avIucIi  may  from  time  to  time  arise,  impressing 
them  with  the  fact  that  the  local  officers  are  prepared  and  anxious  to  handle 
all  matters  of  mutual  interest  between  the  communities  and  railroads,  and  that 
it  is  not  necessary  to  appeal  to  Washinirtoii  in  the  transaction  of  the  ordinary 
business  of  the  railroad. 

The  local  officers  should  l>o  impressed  with  the  importance  of  givinj?  every 
consideration  and  attention  to  inatters  tliat  may  be  brouglit  before  them,  and 
that  all  suggestions  should  have  careful  consideration,  and  there  is  no  doubt 
that  the  stimulation  of  the  local  railroad  agents  and  employees,  as  well  as  the 
satisfaction  of  the  public,  will  amply  prove  the  wisdom  of  this  procedure. 


SHORT-LINE    CONTRACT. 

October  25,  1918. 

Director  General  McAdoo  to-da}'  approved  and  promulgated  the 
contract  for  the  short-lme  railroads. 

This  contract  follows  the  general  principles  announced  by  the 
President  at  the  time  he  vetoed  the  short-line  resolution.  It  is  be- 
lieved that  this  will  be  satisfactor}-  to  short-line  owners  and  will  en- 
able them  to  continue  in  operation  as  successfully  as  before  Federal 
control. 

It  provides  that  until  it  is  necessary  for  the  Director  General  to  ex- 
ercise control  over  the  short-line  roads  for  war  purposes,  they  are  to 
remain  under  the  management  and  direction  of  their  owners  and  are 
entitled  to  all  the  revenues  and  responsible  for  all  expenses  and  obli- 
gations ;  that  the  rates,  fares,  and  charges  for  transportation  services 
performed  jointly  by  the  short  lines  and  the  trunk  lines  shall  be 
divided  fairly  between  the  Director  General  and  the  company.  The 
arbitraries  and  percentages  of  joint  rates  received  by  the  short  lines 
on  January  1.  1918,  shall  not  be  reduced,  and  when  joint  rates  are  in- 
creased, the  short  lines  shall  receive  their  proportion  of  such  increased 
rate  in  the  same  ratio;  that  the  short  lines  are  to  receive  an  equitable 
allotment  of  cars  (and  where  feasible  motive  power),  and  for  the 
equipment  furnished  by  the  Director  General  they  shall  pay  same 
rental  as  the  Director  General  pays  for  their  equipment  used  by  him, 
and  an  allowance  of  two  days'  free  time  on  cars  for  loading  and  un- 
loading is  made  on  lines  of  road  of  100  miles  in  length  or  less. 

Such  arrangement  shall  be  made  for  the  routing  of  competitive 
traffic  over  the  short  line  as  will  guarantee  to  it  the  same  amount  of 
competitive  traffic  as  was  enjoyed  for  the  average  of  the  three  years 
ending  December  31,  1917,  and  the  short  line  as  far  as  practicable 
is  to  have  the  benefit  of  the  purchasing  agencies  of  the  Director  Gen- 
eral in  the  purchase  of  material  and  supplies,  and  at  the  prices  paid 
by  him;  and  have  its  repairs  made  at  the  shops  of  its  connecting 
lines  upon  the  same  terms  as  was  enjoj'ed  before  Federal  control. 


126 

There  shall  be  no  discrimination  against  the  company  in  the  mat- 
ter of  publishing  tariffs  and  routing.  Short  lines  will  be  treated  in 
the  same  manner  as  the  trunk  lines,  except  that  nothing  in  the  con- 
tract shall  be  construed  to  require  the  establishment  of  joint  rates 
where  joint  rates  were  not  in  effect  at  the  beginning  of  Federal 
control. 

The  order  of  relinquishment  issued  in  June  is  to  be  set  aside,  and 
the  road  restored  to  Federal  control  on  the  basis  of  the  contract,  and 
the  right  is  given  to  the  Director  General  to  take  over  the  operation 
of  the  road  if  in  his  opinion  a  war  necessity'  arises. 

The  Director  General  will  formulate  definite  rules  and  regula- 
tions governing  transportation  which  shall  apply  to  the  short  lines 
without  discrimination. 


EXPRESS   CONTRACT. 

October  26,  1918. 

The  Interstate  Commerce  Commission  in  its  decision  announced 
to-day  with  reference  to  proposed  increase  in  express  rates  indicates 
that  the  plan  proposed  constitutes  a  justifiable  method  of  dealing  with 
the  necessities  of  the  situation  unless  the  Director  General  should  re- 
duce the  percentage  basis  of  compensation  which  the  Express  Com- 
]3any  is  to  pay  the  Director  General  or  unless  he  should  make  what  is 
in  effect  a  similar  change  in  the  contract  by  providing  that  only  half 
of  the  proposed  increase  in  rates  shall  be  made  and  that  the  entire 
increase  thus  made  shall  inure  to  the  benefit  of  the  Express  Com- 
pany. 

These  alternatives  had  already  been  carefully  considered  by  the 
Director  General  and  the  conclusion  was  reached  that  neither  alter- 
native was  justifiable  in  the  circumstances. 

The  contract  between  the  Director  General  and  the  Express  Com- 
pany provides  that  the  Express  Company  shall  pay  to  the  Govern- 
ment for  the  express  privileges  accorded  to  it  by  the  Director  Gen- 
eral 50.25  per  cent  of  the  gross  revenues  from  the  express  business. 
This  percentage  represents  the  average  which  has  been  paid  for  10 
years  by  the  express  companies  to  the  railroads,  and  it  is  fair  to  as- 
sume that  this  percentage  represents  what  is  required  for  the  per- 
formance of  that  part  of  the  total  service  which  has  been  performed 
by  the  railroads  in  the  past.  Moreover,  the  heavy  increases  in  operat- 
ing costs  on  the  railroads  have  necessitated  substantial  increases  in 
freight  and  passenger  rates,  averaging  probably  25  per  cent  or  more, 
and  averaging  in  the  case  of  many  passenger  rates  as  much  as  50 
per  cent.  In  such  circumstances  it  is  clearly  unwise  to  make  an  actual 
reduction  in  the  basis  of  the  Government's  compensation  for  the  ex- 
press privileges  accorded  to  the  Express  Company  for  services  on 
passenger  trains.      By  the  preservation  of  the  present  established 


127 

basis  of  compensation  for  the  express  privileges  the  increase  in  reve- 
nue of  the  Eaih-oad  Administration  from  the  carrymg  of  express  busi- 
ness on  passenger  trains  will  be  no  greater  than  the  increased  revenue 
paid  for  transportation  of  passengers  and  their  baggage  and  such  in- 
crease from  the  express  business  is  just  as  appropriate  and  necessary 
as  the  increase  from  the  passenger  business. 

Another  consideration  of  first  importance  is  that  the  relatively  low 
rates  for  transportation  of  express  matter  have  had  the  effect  of  trans- 
ferring to  passenger  trains  the  transportation,  as  express,  of  many 
articles  and  commodities  which  ought  normally  to  go  by  freight. 
This  tendency  has  been  accentuated  by  the  substantial  increases  re- 
cently made  in  freight  rates.  The  result  of  this  undue  transfer  of 
freight  matter  to  passenger  trains  has  been  to  congest  and  delay  the 
passenger  train  service.  The  proposed  increase  in  express  rates  will 
probably  fall  short  of  establishing  a  proper  relation  between  express 
rates  and  freight  rates  and  certainly  on  this  account  no  less  increase 
in  express  rates  than  is  proposed  would  be  advisable. 

The  entire  amount  of  this  increase  which  will  inure  to  the  express 
company  is  to  be  used  for  making  necessary  increases  in  wages  of  ex- 
press employees.  The  portion  of  the  increase  which  will  inure  to 
the  Railroad  Administration  will  be  no  more  than  is  needed  to  pro- 
vide for  heavy  increases  in  operating  cost  fairly  chargeable  to  the 
express  business. 

UNIFORM    RATES. 

October  27.  1918. 

Director  General  McAdoo  has  submitted  to  the  Interstate  Com- 
merce Commission  and  State  railroad  commissions  a  system  of  class 
rat€s  which,  if  adopted,  will  do  away  with  most  of  the  discrimina- 
tions and  inequalities  that  now  exist  and  will  bring  about  a  greater 
degree  of  uniformity  in  those  sections  of  the  country  where  condi- 
tions of  transportation  are  practically  identical. 

These  mileage  schedules  of  class  rates,  which  are  purely  tenative, 
are  offered  for  adoption  in  the  territory  east  of  the  Mississippi  River 
and  south  of  the  Ohio  River  and  of  the  main  line  of  the  Xorfolk  &> 
Western  Railroad;  also  in  all  of  the  States  west  of  the  Mississippi 
River,  including  Wisconsin  and  Minnesota. 

In  the  West  the  country  has  been  divided  into  zones,  within  which 
for  both  intrastate  and  interstate  application,  the  following  scales 
are  suggested :  In  Iowa,  Wisconsin,  Minnesota,  and  ^Missouri  north 
of  the  Missouri  River  the  75  per  cent  scale ;  in  North  Dakota,  South 
Dakota,  Nebraska,  Kansas,  Oklahoma,  Arkansas,  Missouri  south  of 
the  Missouri  River,  Louisiana  west  of  the  Mississippi  River,  and 
Texas  common  point  territory  the  100  per  cent  scale.  This  same 
scale  is  also  propo'^ed  for  application  intrastate  and  interstate  be- 
tween points  in  the  States  of  California,  Oregon,  and  Washington. 


128 

In  Arizona,  New  Mexico,  Colorado,  Xevada,  Utah,  Wyoming,  Idaho, 
Montana,  and  Texas  differential  territory  the  120  per  cent  scale  is 
suggested. 

In  this  connection  it  is  interesting  to  note  that  the  100  per  cent  scale, 
which  is  now  proposed  for  nse  in  several  of  the  gxanger  States,  is  ex- 
actly the  same,  except  for  its  extension  to  1,000  miles,  as  that  recently 
agreed  upon  for  nse  in  the  State  of  Oklahoma  at  a  conference  be- 
tween Director  General  McAdoo  and  the  railroad  commissioners  of 
that  State  to  whom  it  was  entirely  satisfactory. 

In  the  southeastern  territory  one  of  two  scales  is  proposed  for 
adoption,  the  first  being  the  same  as  offered  for  application  in  100  per 
cent  Avestern  territory  to  be  governed  by  the  western  classification; 
the  other  a  special  scale  designed  to  be  used  in  connection  with  the 
southern  classification.  It  is  hoped  the  people  of  the  Southeast  may 
find  it  advantageous  to  adopt  the  western  scale  and  western  classifi- 
cation which  would  prove  not  only  a  great  convenience  to  the  ship- 
pino-  public  but  also  a  long  step  toward  a  uniform  classification  which 
is  desired. 

It  is  not  the  idea  of  Director  General  McAdoo  that  these  scales 
should  apply  interterritorially ;  for  instance,  between  two  points  one 
of  which  is  in  75  per  cent  and  the  other  in  100  per  cent  territory.  The 
only  exception  to  this  is,  it  is  proposed  to  apply  interterritorially 
within  the  boundaries  of  the  State  of  Texas  the  scale  for  100  per 
cent  territory  in  conjunction  with  the  scale  of  differential  rates  pre- 
scribed by  the  Interstate  Commerce  Commission  in  the  Shreveport 
Case  for  application  in  Texas  differential  territory  without,  however, 
the  increase  of  25  per  cent  provided  for  in  General  Order  No.  28.  It 
is  believed  the  overhead  or  specific  rates,  which  will  be  continued  in 
effect,  will  amply  protect  interterritorial  traffic,  as  well  as  the  few 
interstate  movements  beyond  the  maximum  distance  for  which  the 
proposed  schedules  are  fixed  within  the  various  zones. 

These  scales  are  being  sent  to  the  various  State  commissions  and 
to  connnercial  organizations  in  the  States  affected  inviting  their 
criticism  and  suggestions.  The  advice  of  the  Interstate  Commxcrce 
Connnission  is  also  being  sought  under  the  eighth  section  of  the  Fed- 
eral control  act,  and  presuuuibly  hearings  will  be  held  by  that  body 
to  the  end  that  the  widest  possible  investigation  as  to  their  propriety 
and  reasonableness  may  be  made.  In  addition  to  this  they  are  being 
sent  to  the  various  traffic  committees  throughout  the  territory  pre- 
scribed, that  they  may  analyze  them  and  offer  constructive  criticisms 
and  suggestions  as  to  their  possible  use. 

Director  General  McAdoo  is  not  wedded  to  any  theory  or  any 
schedule.  His  purpose  is  to  bring  on  a  full  and  intelligent  discus- 
sion of  the  subject  to  the  end  that  what  is  right  and  in  the  public 
interest  may  prevail. 


129 

LOW   RATES    FOR    DISCHARGED    SOLDIERS    AND    SAILORS. 

November  19,  1918. 

Because  of  the  law  allowing  3|  cents  per  mile  for  transportation 
and  sustenance  for  soldiers  and  in  order  to  make  certain  that  soldiers 
will  not  be  required  to  pay  any  part  of  the  expense  of  returning  to 
their  homes  after  being  discharged  from  the  Army,  Director  General 
McAdoo  to-day  authorized  a  reduction  of  33  J  per  cent  in  the  current 
coach  fare  for  this  purpose,  making  the  rate  to  them  approximately 
2  cents  per  mile. 

It  is  estimated  that  the  total  reduction  of  railroad  revenue  resulting 
from  this  arrangement  Avill  be  approximately  $12,000,000.  If  the  dis- 
charged soldiers  require  sleeping-car  accommodations,  they  will  pay 
the  additional  charge  of  approximately  one-half  cent  per  mile  in 
tourist  cars,  the  type  of  sleeping  car  which  will  be  generally  used. 
This  will  leave  them  an  adequate  amount  to  pay  for  their  meals  while 
going  home. 

It  will  be  necessary  to  file  with  the  Interstate  Commerce  Commis- 
sion special  tariffs  authorizing  this  rate,  which  will  be  done  promptly, 
and  the  arrangement  will  be  placed  in  effect  within  the  next  few  days. 
It  Avill  be  applicable  until  further  notice  to  all  discharged  soldiers  as 
well  as  to  the  132,000  men  stationed  at  the  14  camps  throughout  the 
country  and  who  are  to  be  immediately  demobilized  by  the  War  De- 
partment and  honorably  discharged. 


NEW   EXPRESS   RATES. 

November  20,  1918. 

A  general  order  initiating  increased  express  rates  was  issued  by 
Director  General  McAdoo  to-day  effective  January  1,  1919.  Tlie 
essential  features  of  the  order  provide  that  in  the  territory  north  of 
the  Ohio  and  Potomac  Rivers,  and  east  of  the  Mississippi  River,  the 
increase  in  express  merchandise  rates  range  from  16  to  17  cents 
per  hundred 'pounds  regardless  of  the  distance  hauled  in  that  terri- 
tory. The  increase  in  the  balance  of  the  United  States  will  range 
from  10  to  12  cents  per  hundred  pounds  on  merchandise.  The 
increase  on  food  products  will  be  about  three-quarters  of  the  increase 
on  merchandise  shipped  by  express. 

The  Director  General  submitted  this  plan  for  increased  express 
rates  to  the  Interstate  Commerce  Commission  for  its  advice.  He  in- 
dicated to  the  commission  that  it  was  necessary  to  raise  approxi- 
mately $24,000,000  additional  revenue,  which  under  the  contract 
would  go  practically  half  to  the  railroad  revenue  and  half  to  the  ex- 
press revenue,  and  inquired  Avhether  the  plan  proposed  would  yield 
105889°— 19 9 


130 

approximately  that  amount,  and  if  so  whether  the  plan  was  proper. 
The  commission  after  a  public  hearing  announced  its  conclusion  that, 
if  the  amount  of  increased  revenue  was  needed,  the  plan  proposed  was 
proper  and  preferable  to  any  other  method  that  had  been  suggested. 
The  commission  pointed  out  that  under  this  plan  the  greater  increase  in 
rates  would  be  applied  in  the  eastern  territory,  which  is  the  terri- 
tory "  of  lowest  rates  of  the  greatest  cost  of  operation  and  greatest 
increase  in  those  costs,"  and  stated  that  while  the  plan  would  be  a 
departure  from  the  original  zone  relationship  established  by  the  com- 
mission, that  departure  appeared  under  the  circumstances  now  pre- 
sented to  the  commission  to  be  justified. 

The  commission  raised  for  the  Director  General's  consideration 
the  question  whether  the  increase  in  rates  could  be  obviated  by  a  re- 
duction in  the  amount  which  the  Express  Company  is  required  to 
pay  the  Railroad  Administration  for  the  express  privilege,  but,  as 
the  Director  General  has  heretofore  announced,  such  change  in  the 
contract  is  not  practicable  in  view  of  the  relative  cost  to  the  Eail- 
road  Administration  of  handling  the  express  business  and  in  view 
of  the  heavy  increase  in  the  operating  costs  attributable  to  the  rail- 
road handling  of  that  business. 

The  fact  that  the  eastern  territory  is  the  region  of  greatest  cost  of 
operation  and  of  greatest  increase  in  such  cost  is  due  to  the  fact 
that  in  that  region  there  is  the  greatest  percentage  of  short-liaul 
traffic  on  which  relatively  the  terminal  and  other  costs  are  greatest. 
Another  important  advantage  in  increasing  the  rates  in  the  eastern 
territory  to  a  greater  extent  than  other  parts  of  the  country  is  that 
it  will  have  a  tendency  to  restore  the  proper  balance  between  express 
and  freight  rates,  which  has  been  disturbed  in  recent  years  by  the 
greater  increase  in  freight  rates  that  have  been  granted  in  that  terri- 
tory than  in  other  parts  of  the  country,  which  has  resulted  in  the 
transfer  from  freight  to  express  transportation  of  much  traffic  which 
ought  to  move  by  freight. 

This  eastern  territory  has  been  swamped  with  express  traffic  for 
the  past  two  years,  a  great  deal  of  it  having  been  diverted  from  the 
regular  freight  trains,  causing  congestion  of  tenninals,  overcrowding 
of  passenger  trains,  and  producing  a  volume  of  traffic  which  pre- 
vented giving  good  express  service  on  shipments  which  were  usually 
handled  in  that  way. 

It  is  expected  the  increased  express  rates  will  have  the  effect  of 
transferring  considerable  of  the  short-haul  business  to  motor  trucks 
and  back  to  the  freight  service,  where  it  really  should  be  handled. 
It  is  also  anticipated  that  another  result  will  be  the  transferring  of 
the  handling  of  some  of  the  smaller  packages  to  the  parcel  post.  It 
will  increase  the  rates  in  some  of  the  Middle  Western  States,  where 
the  express  rates  have  been  unduly  low;  in  fact,  in  some  cases  where 


131 

they  have  been  lower  than  the  freight  rates  and  considerably  lower 
ihan  the  express  rates  in  surrounding  States  which  had  adopted 
the  Interstate  Commerce  Commission  basis  of  rates  made  for  the 
express. 

The  Express  Company  increased  the  wages  of  their  employees  to 
the  extent  of  about  $10,000,000  beginning  July  1,  which  used  up 
approximately  the  increase  of  10  per  cent  in  express  rates  effective 
July  15.  It  soon  became  evident  that  many  express  employees  were 
still  underpaid  and  the  question  of  their  wages  is  now  being  pre- 
sented to  the  Board  of  Eailroad  Wages  and  Working  Conditions, 
and  it  is  expected  that  the  further  increased  wages  will  practically 
consume  all  of  the  increased  revenue  which  will  come  to  the  Express 
Company  after  January  1  under  this  order. 


SHOP   HOURS. 

November  22,  1918. 

The  emergenc}^  under  which  railroad  employees  in  locomotive  and 
car  repair  shops  patriotically  worked  long  hours  during  the  war 
period,  having  in  some  degree  passed,  Director  General  McAdoo  to- 
day issued  directions  under  which  the  locomotive  and  car  shop  hours 
as  far  as  practicable,  will  be  reduced  to  nine  hours  per  day  effective 
November  25,  and  to  eight  hours  per  day  effective  December  9, 

The  Director  General  sent  the  following  telegram  to  all  Eegional 
Directors : 

Last  spring  when  the  raih-oads  were  still  struggling  with  congestion  traffic 
and  weather  conditions  were  very  severe,  the  different  mechanical  organizations 
responded  in  a  most  gratifying  way  to  the  request  that  the  men  work  a  greater 
number  of  hours  in  the  shops  tlirougliout  tlie  country  than  they  had  been  ac- 
customed to,  or  than  some  of  their  agreements  with  the  railroads  provided,  in 
order  to  repair  locomotives  and  cars  for  the  prompt  transportation  of  munitions 
of  war  and  for  food  and  other  supplies  for  our  Army  and  Navy  abroad  and  the 
allies.  It  is  now  possible,  in  view  of  the  signing  of  the  armistice,  to  anticipate  an 
early  return  to  normal  conditions,  and  directions  liave  been  issued  that  wher- 
ever practicable  the  locomotive  and  car  shop  hours  shall  be  reduced  on  November 
25  to  9  hours  per  day  where  greater  number  is  now  being  worked  and  to  basis 
of  8  hours  per  day  on  December  9.  Tlie  Director  General  desires  to  express  his 
deep  appreciation  of  the  patriotic  response  of  the  mechanical  workmen  on  all 
railroads  and  his  gratification  that  it  is  no  longer  necessary  to  call  for  number 
of  hours  of  service  heretofore  required. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


ELIMINATION  OF  EXTRA  PULLMAN  RATE. 

November  26,  1918. 
Director  General  McAdoo  to-day  authorized  the  following: 
Effective  December  1,  the  additional  passage  charge  of  16|  per 
cent  of  the  normal  one-way  fare  now  required  from  passengers  travel- 


ing  in  standard  sleeping  cars  and  parlor  cars,  and  8^  per  cent  of 
the  normal  one-way  fare  required  from  passengers  traveling  in  tourist 
sleeping  cars  will  be  abolished.  This  means  a  reduction  of  one-half 
cent  per  mile  in  the  fare  of  passengers  nsing  sleeping  or  parlor  cars, 
and  one-fourth  cent  a  mile  in  the  fare  of  those  using  tourist  sleeping 
cars. 

The  charge  in  question  has  served  a  useful  purpose  in  conserving 
sleeping  car  equipment. 

LOW-PRICED  MEALS  FOR  DISCHARGED  SOLDIERS  AND  SAILORS. 

November  30,  1018. 

Instructions  have  been  issued  by  Director  General  McAdoo  to  fur- 
nish discharged  soldiers  and  sailors,  traveling  to  their  points  of  en- 
listment, with  so-called  military  meals  at  the  special  rate  of  75  cents 
as  granted  to  men  in  the  service  under  an  arrangement  made  with  the 
several  military  departments  sometime  ago. 

Special  reduced  fares  accorded  discharged  soldiers  and  sailors  are 
on  the  basis  of  two-thirds  of  the  normal  coach  fare  applying  via  route 
traveled,  or  2  cents  per  mile,  except  that  the  rate  per  mile  would,  of 
course,  be  higher  in  those  States  where  the  basic  fare  is  more  than  3 
cents  per  mile.  Between  the  reduction  of  the  fare  and  the  special  meal 
rate  made,  it  is  believed  they  have  been  amply  provided  for,  particu- 
larly in  view  of  the  fact  that  the  additional  passage  charge  for  occu- 
pancy of  space  in  parlor  and  sleeping  cars  is  canceled  on  December  1. 
so  that  such  discharged  soldiers  and  sailors  will  have  at  their  command 
at  least  a  half  cent  per  mile  more  than  they  actually  need  to  cover 
their  total  expenses  in  reaching  home. 


FREEDOM  FROM  CONGESTION, 

December  3,  1918. 
Director  General  McAdoo  to-day  authorized  the  following: 
The  difficult  experiences  of  railroads  in  recent  years  with  serious 
traffic  congestions  which  clogged  transportation  resulted  in  the  Kail- 
road  Administration  early  in  the  year  making  comprehensive  plans 
to  prevent  the  movement  of  freight  in  the  areas  where  congestion 
was  threatened.  This  policy  Avas  then  extended  Avith  respect  to 
numerous  sorts  of  traffic  destined  to  difficult  areas  to  prevent  the 
loading  of  shipments  except  upon  the  issuing  of  i^ermits  which  would 
only  be  granted  upon  showing  that  the  shipments  could  be  unloaded 
at  destination. 

The  consistent  carrying  out  of  these  policies  lia^  resulted   in  an 
exceptional  degree  of  freedom  from  congestion  during  the  period  of 


133 

heavy  business  this  fall  and  there  are  now  outstanding  no  general 
embargoes  against  the  free  movement  of  traffic.  In  this  respect 
transportation  conditions  are  much  better  than  for  several  years 
past  at  this  season  of  the  year. 

In  view  of  the  greatly  improved  conditions  it  is  the  policy  of  the 
Railroad  Administration  to  employ  embargoes  in  the  most  sparing 
manner  possible  and  with  the  gi-eatest  possible  consideration  of  the 
public,  and  it  is  hoped  that  the  necessity  for  such  steps  will  be  com- 
j)aratively  small.  At  the  same  time,  however,  if  difficult  conditions 
so  unexpectedly  arise  the  only  way  to  deal  effectively  with  them  will 
be  through  the  prompt  use  of  measures  which  will  prevent  railroads 
being  clogged  through  having  thrown  upon  them  shipments  which 
can  not  be  promptly  moved  and  which  would  only  serve  to  impair 
the  current  transportation  capacity. 

Due  to  improved  transportation  conditions  it  is  not  expected  that 
embargoes  will  be  necessary  during  the  coming  winter  to  an^'thing 
like  the  extent  to  which  they  were  used  a  year  ago.  With  the  experi- 
ence gained  during  the  past  year,  and  the  system  which  has  been 
Avorked  out  during  that  time,  the  Railroad  Administration  is  in  a 
position  to  direct  the  operation  of  the  roads  in  such  manner  as  to 
result  in  the  handling  of  a  maximum  amount  of  tonnage  with  the 
least  practical  interference. 

There  is  now  outstanding  a  list  of  standard  exemptions  to  em- 
bargoes which  was  carefully  worked  out  and  issued  in  February, 
1918,  with  accompanying  instructions  that  commodities  listed  should 
be  exempted  in  the  order  shown  where  the  use  of  embargo  in  varjang 
ilegrees  might  be  necessary.  The  effect  of  this  has  been  that  much 
unnecessary  work  and  delay  in  making  shipments  has  been  avoided 
by  the  elimination  of  applications  for  and  issuance  of  permits  in 
connection  with  such  .conmiodities  the  nature  of  which  made  it  neces- 
sary that  transportation  should  be  arranged.  This  list,  for  instance, 
has  recognized  in  the  firet  instance  the  necessity  of  moving  live  stock 
and  jjerishables,  following  in  turn  have  been  fuel  in  its  varying 
forms,  food  and  feed  for  human  and  animal  consumption,  Govern- 
ment freight,  etc.  Experience  has  proven  that  this  list  should  be 
maintained  substantially  as  at  present  as  it  is  satisfactorily  pro- 
tecting the  public  interest. 

PASSENGER   SERVICE. 

to  the  american  people. 

December   10,   1918. 
On  January  6  last,  important  changes  in  passenger  train  service 
on  the  eastern  roads  became  effective,  and  at  that  time  I  issued 


134 

a  public  statement  saying  that  "Every  patriotic  citizen  can  directly 
help  the  Government  in  clearing  up  the  present  unsatisfactory  sit- 
uation on  the  railroads  by  refraining  from  all  unnecessary  travel  at 
this  time."  The  policy  thus  outlined  has  of  necessity  been  continued 
throughout  the  period  of  the  war  because  the  primary  duty  of  the 
railroads  was  to  contribute  their  maximum  power  to  the  winning  of 
the  war. 

This  emergency  has  now  passed.  The  war  has  been  won.  In  this 
epochal  outcome  the  American  railroads  have  played  a  vital  part. 
Transportation  has  underlaid  every  industrial  activity  during  the 
war  as  it  does  in  peace  time.  Without  adequate  transportation  our 
troops  and  the  supplies  for  our  own  Army  and  for  the  armies  of  our 
allies  could  not  have  been  moved.  To  this  splendid  achievement 
those  Americans  who  refrained  from  traveling  unnecessarily  during 
the  war  may  justly   feel  that  they  contributed. 

During  the  war  the  transportation  of  civilian  passengers  and  of 
freight  not  needed  in  the  war  was  of  secondary  importance.  After 
giving  priority  to  the  movement  of  war  necessities,  it  has  been  the 
policy  of  the  Railroad  Administration  to  supply  the  most  adequate 
service  possible,  both  passenger  and  freight,  to  nonwar  business. 

The  war  now  being  practically  over,  it  will  be  the  policy  of  the 
Railroad  Administration  during  the  remaining  period  of  Federal 
control  to  give  to.  the  public  the  best  service  of  which  the  railroads 
are  capable.  While  the  necessity  still  remains  for  moving  large  quan- 
tities of  supplies  to  Europe,  and  while  a  considerable  proportion  of 
the  railroad  passenger  equipment  will  be  needed  in  returning  Ameri- 
can.soldiers  and  sailors  to  their  homes,  the  problem  can  now  be  defi- 
nitely appraised  and  there  is  every  reason  to  believe  that  adequate 
service  may  be  given  in  the  future  for  the  ordinary  business  of  the 
Nation. 

As  rapidly  as  possible,  service  will  be  improved,  although  trains 
which  were  run  under  private  control  merely  for  competiti%e  reasons 
will  not  be  restored.  Such  service  was  unnecessary.  Plans  have  al- 
ready been  made  for  service  to  California,  Florida,  and  the  South- 
eastern States  during  the  coming  winter.  The  public  may  be  assured 
that  the  Railroad  Administration  will  do  everything  possible  to  meet 
the  needs  of  the  traveling  public.  In  line  with  this  policy  was  the 
recent  elimination,  effective  December  1,  of  the  extra  one-half  cent 
a  mile  for  traveling  in  Pullman  cars,  and  of  one-fourth  cent  a  mile 
for  traveling  in  tourist  coaches,  which  was  imposed  as  a  war  meas- 
ure partially  for  the  purpose  of  keeping  passenger  travel  during  the 
war  at  a  minimum. 

There  were  some  wasteful  and  extravagant  practices  during  pri- 
vate control  of  railroads.     These  will  not  be  restored  during  the 


135 


period  of  Federal  control  but,  within  the  limits  of  good  business 
practice,  the  public  may  expect  every  reasonable  convenience  and 
comfort  on  the  railroads  operated  by  the  Government. 

(Signed)  W.  G.  McAdoo, 

Director  General'  of  Railroads. 


LETTER  TO  JUDGE  SIMS  IN  RE  RAILROAD  LEGISLATION. 

December  11,  1918. 
My  Deapx  Judge  Sims:  The  question  of  railroad  legislation  is  of 
such  vital  importance  to  the  country  that  I  take  the  liberty  of  submit- 
ting to  you  mv  views  as  to  the  course  that  should  now  be  pursued.  Tlie 
war  is  ended,  and  we  are  now  confronted  with  the  necessity  either  ot 
legislating  intelligently  about  the  railroad  problem  at  this  session  of 
the  Congress  or  of  promptly  returning  the  railroads  to  their  owners. 
Less  than  three  months  of  the  present  session  of  the  Congress  re- 
main. It  will  be  impossible,  I  presume,  to  secure  legislation  in  this 
short  period  providing  a  permanent  solution  of  the  railroad  problem. 
This  being  true,  only  three  courses  are  open :  ( 1 )  Government  opera- 
tion of  the  railroads  for  one  year  and  nine  months  following  a  proc- 
lamation of  peace,  which  would  mean,  in  my  judgment.  Government 
operation  for  a  period  in  no  event  longer  than  two  years  and  three 
months;  (2)  the  prompt  return  of  the  railroads  to  private  control; 
or  (3)  extension  of  the  period  of  Federal  control  to  five  years. 

I  am  convinced  that  it  is  wholly  impracticable,  as  well  as  opposed 
to  the  public  interest,  to  attempt  to  operate  the  railroads  under  the 
provisions  of  the  present  law.  In  the  first  place,  the  time  is  too  short, 
and,  secondly,  the  present  legislation  is  inadequate. 

As  to  the  shortness  of  time,  it  is  clear  to  me  that  the  railroads  can 
not  be  successfully  operated  under  Federal  control  during  the  next 
two  years  in  the  face  of  an  automatic  transfer  to  private  control  at  the 
end  of  that  time  or  of  an  earlier  relinquishment  by  proclamation  of 
the  President.  Every  month  that  passes  will  bring  more  clearly  to 
the  minds  of  the  officers  and  employees  the  fundamental  change  in 
management  that  is  impending,  and  the  question  as  to  what  that 
change  means  to  the  individual.  It  is  against  human  nature  that  there 
can  be  complete  and  single-minded  attention  to  duty  under  such  dif- 
ficult circumstances.  This  will  be  especially  true  on  account  of  the 
inevitable  discussion  as  to  what  ought  to  be  done.  Already  this  dis- 
cussion is  in  full  swing,  and  its  reaction  on  offices  and  employees  can 
not  be  consistent  with  the  complete  concentration  upon  their  daily 
duties.  State  railroad  commissions,  railroad  security  holders,  rail- 
road executives,  shippers'  organizations,  and  other  interests  are  natu- 
rally and  properly  discussing  the  subject  and  proposing  various  solu- 


136 

tions.  However  desirable  the  discussion  is  for  the  crystallization  of 
public  sentiment,  it  can  not  result  otherwise  than  to  produce  a  state  of 
uncertainty  and  ferment  among  the  vast  army  of  railroad  officers  and 
employees  who  will  inevitably  feel  that  they  face  a  rapidly  approach- 
ing change  in  management. 

No  business  in  the  United  States  so  imperatively  requires  dis- 
ciplined organization  and  composed  conditions  of  operation,  for  offi- 
cials as  well  as  for  employees,  as  the  railroad  business.  Not  only 
does  the  safety  of  the  lives  of  millions  of  passengers  depend  upon 
such  disciplined  and  efficient  organization,  but  the  commerce  of  the 
country  as  well.  To  keep  this  vast  army  of  officers  and  employees 
in  a  state  of  uncertainty  and  ferment  for  a  period  of  two  years  would 
be  harmful  in  the  highest  degree  to  the  public  interest.  It  would 
be  impossible  to  prevent  a  serious  impairment  of  the  morale  of  the 
railroad  organizations. 

From  the  standpoint  of  needed  improvements,  the  period  of  two 
years  is  entirely  too  short  a  time  within  which  to  plan  and  carry  out 
the  comprehensive  improvements  which  ought  to  be  made  to  meet  the 
country's  requirements  under  peace  conditions.  Many  of  the  im- 
provements could  hardly  be  completed  and  put  into  operation  inside 
of  the  two-year  period,  and  under  such  circumstances  and  facing 
a  change  to  private  management  at  the  end  of  two  years,  it  would 
be  unwise  in  the  highest  degree  to  make  the  improvements  and  im- 
possible to  secure  the  hearty  cooperation  of  the  railroad  corporations. 

Because  of  the  inadequacy  of  the  present  legislation,  the  authority 
of  the  States  and  the  Federal  Government  has  been  left  in  doubt  by 
provisions  which  I  opposed  when  the  bill  was  under  discussion.  Con- 
flict between  State  and  Federal  jurisdictions  will  grow  more  acute 
under  this  law.  The  revolving  fund  appropriated  by  the  Congress 
will  be  insufficient  to  carry  the  Federal  operation  for  a  two-year 
period.  More  than  that,  it  is  of  the  utmost  importance  to  the  com- 
merce, industry,  and  life  of  the  American  people  that  a  comprehen- 
sive program  of  improvements  to  raih'oad  properties  shall  be  carried 
forward  over  a  period  of  at  least  five  years ;  such  a  program  will  in- 
volve expenditures  of  at  least  $500,000,000  per  annum  or  $2,500,000,000 
for  the  five-year  period.  The  needed  funds  are  not  provided  by  the 
present  law.  ]\Ioreover,  it  is  difficult  under  the  present  law,  without 
the  consent  of  the  corporations,  to  carry  forward  a  comprehensive 
plan  of  joint  improvements,  which,  to  be  of  value  to  the  public,  must 
of  itself  disregard  the  selfish  and  irreconcilable  competitive  interests 
of  the  various  carriers.  Many  terminal  improvements,  to  be  genu- 
inely serviceable  to  the  public,  must  be  made  without  regard  to  the 
interest  of  any  particular  carrier.  Tlierefore,  agreements  between  the 
Government  and  the  railroads  affected  wilh  in  many  instances,  be 
impossible,  and  if  the  Government  should  proceed  with  such  im- 


137 

provements,  using  the  people's  money  for  the  purpose,  without  se- 
curing the  carriers'  consent,  litigation  Avould  undoubtedly  arise  upon 
the  termination  of  Federal  control  with  the  danger  that  a  large  part 
of  the  Government's  investment  in  the  properties  might  be  lost. 

Upon  the  efficiency  of  the  transportation  machine  in  America  de- 
pends in  gi"eat  measure  the  future  prosperity  of  the  Nation,  In- 
volved in  this  prosperity  is  the  extension  of  our  foreign  trade.  We 
produce  so  much  more  than  we  consume  that  markets  must  be  found 
for  that  surplus.  Those  markets  are  the  competitive  markets  of  the 
world.  We  must  be  able  to  enter  them  upon  equal  terms  with  any 
other  Nation.  Our  transportation  system,  both  on  land  and  water, 
must  therefore  function  at  the  highest  point  of  efficiency  and  at  the 
lowest  possible  cost,  if  we  are  to  get  our  reasonable  and  fair  share  of 
the  world's  trade  and  in  turn  be  able  to  keep  a  prosperous,  contented, 
and  happ3^  population  at  home. 

To  attempt  to  continue  Federal  control  under  the  inadequate  pro- 
visions of  the  present  Federal  control  act  and  for  the  very  brief 
period  it  authorizes  Avould  be  to  multiply  our  difficulties  and  invite 
failure.  On  the  other  hand,  I  am  convinced  from  the  experience  of 
the  past  year,  that  the  return  of  the  railroads  to  the  old  competitive 
conditions  will  be  hurtful  alike  to  the  public  interest  and  to  the  rail- 
roads themselves.  This  course,  however,  will  bring  fewer  evils  in  its 
train  than  the  unsatisfactory,  if  not  impotent.  Federal  control  pro- 
vided for  by  the  present  act.  The  railroads  were  taken  over  as  a 
war  measure.  They  have  been  operated  during  the  past  year  for  the 
paramount  purpose  of  winning  the  war.  I  think  it  will  be  gener- 
ally admitted  that  the  war  service  has  been  successfull}^  rendered, 
and  I  am  sure  that  experience  of  great  value  and  benefit  has  been 
gained  not  only  for  the  public  but  for  the  railroads  themselves  dur- 
ing this  brief  test. 

There  is  one,  and  to  my  mind  only  one,  practicable  and  wise  alter- 
native, and  that  is  to  extend  the  period  of  Federal  control  from  the 
one  year  and  nine  months  provided  by  the  present  law  to  five  years, 
or  until  the  first  day  of  Januar}^,  1924.  This  extension  would  take 
the  railroad  question  out  of  politics  for  a  reasonable  period.  It 
w^ould  give  composure  to  railroad  officers  and  employees.  It  would 
admit  of  the  preparation  and  carrying  out  of  a  comprehensive  pro- 
gram of  improvements  of  the  railroads  and  their  terminal  facilities 
which  would  immensely  increase  the  efficiency  of  the  transportation 
machine.  It  would  put  back  of  the  railroads  the  credit  of  the  United 
States  during  the  five-year  period  so  that  the  financing  of  these  im- 
provements could  be  successfully  carried  out.  It  would  offer  the 
necessary  opportunity  under  proper  conditions  to  test  the  value  of 
unified  control,  and  the  experience  thus  gained  would  of  itself  indi- 
cate the  permanent  solution  of  the  railroad  problem. 


138 

The  American  people  have  a  right  to  this  test.  They  should  not  bo 
denied  it.  It  is  to  their  interest  that  it  should  be  done.  In  my  opin- 
ion, it  is  the  only  practicable  and  reasonable  method  of  determining 
the  right  solution  of  this  grave  economic  problem. 

I  am  not  now  and  have  not  been  for  the  past  year  interested  in 
proving  or  disproving  the  theory  of  Government  ownership  or  any 
other  kind  of  theory.  The  railroads  have  been  operated  for  the  past 
year  with  the  purpose  of  serving  efficiently  the  paramount  needs  of 
the  war  and  at  the  same  time  furnishing  the  best  possible  service  to 
the  public,  whether  such  operation  tended  to  prove  or  disprove  any 
theory  or  railroad  control,  no  matter  what  it  might  be.  I  have 
formed  no  opinion  myself  as  to  what  is  the  best  disposition  of  the 
railroad  problem  because  the  test  has  not  been  sufficient  to  prove 
conclusively  the  right  solution  of  the  problem.  I  believe  that  a  five- 
year  test  will  give  the  American  people  the  right  answer.  An  ounce 
of  experience  is  worth  a  ton  of  theory,  and  with  the  start  already 
made  under  war  conditions,  it  would  be  a  comparatively  simple 
matter  to  complete  the  test  so  well  begun  and  thereby  gain  the  in- 
valuable experience  which  will  determine  the  solution  of  a  problem 
which  has  vexed  our  State  and  National  politics  and  our  economic 
development  for  the  past  generation. 

There  are  those  who  may  say  that  an  extension  of  five  years  for 
such  a  test  will  mean  Government  ownership.  Personally  I  do  not 
believe  it.  But  whether  such  a  test  would  indicate  that  the  ultimate 
solution  shall  be  Government  ownership  or  a  modified  form  of  pri- 
vate ownership  under  effective  Federal  regulation,  should  not  cause 
us  to  hesitate  or  refuse  to  act.  It  seems  to  me  that  in  a  democracy 
like  ours,  where  public  opinion  and  the  judgment  of  the  majority 
must  finally  control,  the  plain  duty  is  to  take  those  steps  which  will 
fully  inform  public  opinion,  so  that  the  judgment  may  be  based  upon 
knowledge  rather  than  upon  theory.  Any  test  which  will  illumine 
the  subject  so  completely  that  public  opinion  may  operate  upon  it 
intelligently  would  seem  to  me  to  be  desirable  in  any  circumstances. 

In  this  connection,  may  I  draw  your  attention  to  the  statement  I 
made  before  the  Committee  of  the  Senate  on  January  21,  1918,  in 
reply  to  a  Senator  who  asked  if  I  believed  "in  the  Government 
ownership  of  railroads,"  I  said: 

I  do  not,  or  I  have  not,  at  least,  felt  that  It  was  necessary  to  take  the  actual 
ownership  of  the  railroads.  I  believe  that  it  will  be  impossible  after  the  return 
of  peace  to  restore  the  competitive  conditions  to  the  same  extent  as  they 
existed  prior  to  the  outbreak  of  the  war.  I  favor  some  form  of  governmental 
regulation  and  control  of  a  far  stronger,  more  intelligent,  and  effective  char- 
acter than  we  have  had  licretofore,  because  I  am  satisfied  that  a  stronger  Gov- 
ernment control  will  be  demanded  and  will  have  to  be  worked  out,  both  in  the 
interest  of  the  public  and  in  the  interest  of  the  security  holders  of  these 
railroads. 


139 

Those  who  may  oppose  an  extension  of  five  years  shouhl  face  the 
situation  squarely  and  acknowledge  that  they  prefer  the  immediate 
return  of  the  railroads  to  private  control  under  the  old  conditions 
without  remedial  legislation.  It  is  idle  to  talk  of  a  return  to  private 
control  under  legislation  which  will  cure  the  defects  of  the  existing 
laws.  There  is  neither  time  nor  opportunity  for  such  legislation  at 
present.  It  is  impossible  and  hopeless  for  the  Government  to  at- 
tempt the  operation  of  the  railroads  for  21  months  after  peace  under 
the  present  law.  Therefore,  the  country  should  squarely  face  the 
condition  that  the  railroads  must  promptly  go  back  into  private 
control  with  all  existing  legal  difficulties  unless  the  only  practical 
alternative,  viz,  an  extension  of  time,  is  promptly  granted. 

I  hope  that  the  Congress  in  its  wisdom  will  grant  a  five-year 
period  for  a  test  of  unified  railroad  operation  under  proper  provi- 
sions of  law  which  will  make  that  test  effective  and  at  the  same  time 
take  the  railroad  question  out  of  politics  while  the  test  is  being  made. 
Unless  this  is  done,  I  do  not  hesitate  to  say  the  railroads  should  be 
returned  to  private  ownership  at  the  earliest  possible  moment.  The 
President  has  given  me  permission  to  say  that  this  conclusion  accords 
with  his  own  view  of  the  matter. 
Cordiallv,  vours, 

W.  G.  McAdoo. 

Hon.  T.  W.  Sims, 

CTvairman,  Interstate  and  Foreign 

Commerce  Committee,  Hou.se  of  Representatives. 


HOLIDAY  TRAVEL. 

December  17,  1918. 
Director  General  McAdoo  to-day  authorized  the  following: 
In  anticipation  of  heavy  holiday  travel  which  will  be  augmented 
by  large  numbers  of  soldiers  and  sailors  on  leave,  on  furlough,  and 
discharged  from  the  service,  who  will  receive  the  benefit  of  reduced 
rates,  the  chairmen  of  the  passenger  traffic  committees  have  been  in- 
structed to  arrange  ample  ticketing  facilities  at  the  military  camps 
to  give  attention  to  providing  adequate  train  service  and  when  neces- 
sary to  keep  consolidated  ticket  offices  open  to  a  reasonable  hour  at 
night  to  permit  the  advance  purchase  of  tickets  for  holiday  trips. 
Regional  Directors  Markham  at  Philadelphia  and  Winchell  at  Atlanta 
have  been  asked  to  give  careful  attention  to  providing  the  necessary 
train  service  to  take  care  of  the  heavy  travel  expected  to  move  in  theii 
territories  and  particularly  north  and  south  through  the  Washington 
gateway  on  account  of  the  many  military  camps  along  the  Atlantic 
seaboard. 

In  Washington,  the  consolidated  ticket  office  will  be  ke^Dt  open 
daily,  except  Sundays,  from  December  16  to  December  21,  until  9 :30 


140 

p.  m.  The  advance  purchase  of  tickets  and  securing  of  sleeping-car 
accommodations  is  being  urged.  The  ticket  selling  and  information 
facilities  at  the  city  and  depot  offices  are  filled  to  capacity.  A  second 
information  booth  has  been  installed  in  the  depot.  There  will  be  28 
ticket  windows  at  the  depot  open  day  and  night  as  against  12  win- 
dows in  operation  last  season.  Orders  have  been  placed  for  a  large 
amount  of  extra  sleeping  and  parlor  car  and  coach  equipment.  The 
Union  Transfer  Co.  has  doubled  its  force  Avith  view  of  handling  holi- 
day baggage  without  delay.  The  red  cap  force  at  the  station  has 
been  increased  100  per  cent  and  extra  station  police  will  be  provided. 
Special  passenger  representatives  will  be  assigned  to  depot  work 
throughout  the  holidays  to  facilitate  the  movement  of  traffic  and 
straighten  out  questions  regarding  tickets,  etc.,  and  any  confusions 
that  arise.  The  passenger  representatives  assigned  to  the  govern- 
mental departments  have  circularized  the  a  arious  buildings  and  are 
getting  all  advance  information  possible  relative  to  those  Avho  will  go 
on  vacations  and  those  who  will  leave  here  during  the  holidays  per- 
manently, with  view  to  selling  them  tickets  and  arranging  for  ac- 
commodations in  advance.  All  schools  in  and  around  Washington 
have  been  looked  after  and  arrangements  made  to  take  care  of  the 
scholars  going  on  vacations.  The  terminal  officials,  as  well  as  Piill- 
man  officials,  have  been  fully  posted  and  are  alive  to  the  situation. 


LIST  OF  GENERAL  ORDERS. 

1.  Employees'  status  January  1,  1918;  oommou  use  of  facilities;  routes  and 

rates,  etc. 

2.  Accounting  nietliods  to  continue  as  prescribed  by  tbe  Interstate  Commerce 

Commission. 

3.  Demurrage  charges. 

4.  Classification  of  railroads  in  Eastern,  Southern,  and  Western  Regions. 

5.  Creation  of  Haiiroad  Wage  Commission. 

6.  Restrictions  in  expenditures  of  moneys ;  issuance  of  free  passes. 

Supplement  No.  1.  Newspaper   advertising   payments. 
Supplement  No.  2.  Newspaper   advertising   payments. 

7.  Demurrage  charges   (cancel  G.  O.  No.  3). 

Supplement  No.  1.     Demurrage  charges. 

8.  Hours  of  service  safety  appliances,  and  inspection  laws;  employees'  status. 

9.  Restrictions  in  tilling  othces  paying  .$3,000  and  up  and  $10,000  and  up. 

10.  Inventory  of  material  and  supplies. 

11.  Universal  interline  waybilling  and  standard  forms. 

12.  Rules  regarding  charges  to  capital  accounts. 

Supplement  No.  1.  Rules  regarding  work  involving  charges  to  capital 
account  not  in  excess  of  $2.5,000  (amendment  to  par.  5.  rJeneral  Order 
No.  12). 

13.  Railway  Board  of  Adjustment  No.  1. 

14.  Daylight-saving  law. 

15.  Requirements  relating  to  construction,  maintenance,  and  operation  of  new 

industry  tracks. 

Supplement  No.  1.  Industry  tracks;  contracts;  discontinuance  of  use  of 
track. 

16.  Railroad  presidents  designated  as  companies"  principal  executive  authorities. 

17.  Rules  governing  recording  of  and  accounting  for  all  transactions  arising 

during  Federal  control. 

18.  Lawsuits  against  carriers  while  under  Federal  control. 
IS-A.  Supplement. 

19.  Announcement  of  possession  and  control  of  four  steamship  companies. 

20.  Discontinuance  of  certain  checking  of  operating  bills. 

21.  Simplified  bases  for  apportioning  interroad  freight  revenues. 

22.  Appointment  of  general  manager  New  York  Canal   Section. 

23.  AVeekly  cash  reports. 

Supplement  No.  1.  Instructions  governing  rendering  of  weekly  cash 
reiwrt.  Form  T-5. 

24.  Insurance  instructions. 

25.  Extension  of  freight  credits. 
25-A.  Extension  of  freight  credits. 

26.  Suits  against  carriers. 

(141) 


142 

27.  Wages  of  railroad  employees,     (G.  O.  No.  27,  for  1918,  consists  of  31  docu- 
ments. ) 

Supplement  No.  1.  Salary  and  wage  adjustment. 

Supplement  No.  2.  Hours,  wages,  pay  of  Pullman  Co.  operating  depart- 
ment  (except  conductors,  porters,  maids). 
Supplement  No.  3.  Railroads  added  to  and  made  part  of  Article  I  of 

General  Orders  No.  27. 
Supplement  No.  4.  Wages,  hours,  and  other  conditions  of  employment 
of  employees  in  mechanical  departments  si>ecified  herein. 

Interpretation  No.  1  to  Supplement  No.  4  to  General  Order  No.  27 
and  Addendum  No.  2  thereto.    Employees  in  any  department  to  be 
given  correct  classification  if  present  pay-roll  classification  does 
not  conform  to  ruling  of  Supplement  No.  4  to  General  Order  No.  27. 
Interpretation  No.  2  to  Supplement  No.  4  to  General  Order  No.  27. 
Question  and  decision  regarding  mechanics  and  helpers  engaged  in 
construction,  maintenance,  and   repair  of  electric,  electric-pneu- 
matic, electric-mechanical,  and  mechanical  interlocking  and  signal- 
ing systems;  also  machinists,  electricians,  blacksmiths,  pipe  fitters, 
etc. 
Amendment  No.  1  to  Supplement  No.  4  to  General  Order  No.  27.  Re- 
moval of  certain  inequities  concei*ning  compensation  for  helpers — 
shop  crafts. 
Addendum  No.   1  to   Supplement  No.  4  to  General   Order  No.  27, 

Rates  of  pay  and  rules  for  coach  cleaners. 
Addendum   No.  2  to   Supplement  No.  4  to   General   Order  No.  27. 
Rates  of  compensation  for  certain  classes  of  employees. 
Supplement  No.  5.  Employees  of  operating  department  of  Pullman  Co.; 

wages,  hours,  and  other  conditions  of  employment. 
Supplement  No.  6.  Duties  and  authority  of  Board  of  Railroad  Wages 

and  Working  Conditions  extended. 
Supplement  No.  6-A.  Application  for  interpretation  of  wage  order. 
Supplement  No.   7.  Rates  of  pay  and  rules  for  overtime  and   work- 
ing conditions  for  all  clerical  forces  in  all  departments  and  for  cer- 
tain employees  in  stations,  storage  or  terminal  warehouses,  docks, 
storehouses,  shops,  and  yards  are  hereby  ordered  (superseding  G.  O. 
No.  27,  and  in  lieu  thereof,  as  to  employees  herein  named). 
Interpretation  No.  1  to  Supplement  No.  7  to  General  Order  No.  27. 

Overtime  monthly,  weekly,  or  daily  paid  employees. 
Intei-pretation  No.  2  to  Supplement  No.  7  to  General  Order  No.  27. 
Employees  paid  on  a  tonnage  or  piece-work  basis,  earning  in  ex- 
cess of  43  cents  per  hour ;  rates  of  pay. 
Supplement  No.  8.  Rates  of  pay  and  rules  for  overtime  and  working 
conditions  for  employees  in  maintenance  of  way  department  (except 
mechanics  and  helpers  where  provided  for  in  Sup.  No.  4,  G.  O.  No.  27, 
and  clerical  forces). 
Interpretation  No.  1  to  Supplement  No.  8.  Overtime  monthly,  weekly, 

or  daily  paid  employees. 
Interpretation  No.  2  to  Supplement  No.  S.  House  and  l)ri(lge  cjiriten- 
ters — rates  of  pay. 
Supplement  No.  9.  Additional   duties  of   railroad   wages  and   working 
conditions. 


143 

27 — Continued. 

Supplement  No.  10.  Rates  of  pay.  rules  for  overtime,  and  working 
conditions  for  telegraphers,  telephone  operators  (except  switchboard 
operators),  agent  telegraphers,  agent  telephoners,  towerman,  lever- 
man,  tower  and  train  directors,  block  operators,  and  staffmen  are 
hereby  ordered  (superseding  G.  O.  No.  27  and  in  lieu  thereof). 
Supplement   No.   11.  Rates  of   pay,   rules  for  overtime,   and   working 

conditions  for  certain  employees. 
Supplement  No.   12.  Rates  of  pay,   rules  for  overtime,   and  duties  of 

passenger  brakemen  or  flagmen. 
Supplement   No.  13.  Rates   of   pay,    rules   for   overtime,    and   working 
conditions  for  telegraphers,  telephone  operators  (except  switchboard 
operators),  agents,  agent  telegraphers,  agent  telephoners,  towei-men, 
levermen,  tower  and  train  directors,  block  operators,  and  staffmen 
hereby  ordered   (superseding  G.  O.  No.  27  its  Sups.  Nos.  10  and  11 
and  in  lieu  thereof). 
Intei-pretation    No.    1.  Approval    of    recommendation    of    Railroad 
Board  of  Adjustment  No.  1,  in  matter  of  construction  of  General 
Order  No.  27,  relating  to  bases  of  pay  for  yard  engineers,  yard 
firemen,   yard   conductors   or   foremen,   and   yard   brakemen   or 
helpers. 
Interpretation  No.  2.  Pay  bases  to  be  observed  in  application  of 
rates  of  pay  under  General  Order  No.  27 — ^AU  persons  employed 
in  any  capacity,  and  receiving  lessi  than  $250.00  per  month   in 
salary,   will  receive  increases   named  in  General  Order  No.  27 
unless  specifically  excluded  therein. 
Interpretation  No.  3  to  General  Order  No.  27  and  to  Supplement 
No.  4,  Addenda  Nos.  1  and  2,  Interpretation  No.  1  and  Amendment 
No.  1  thereto.     Method  of  applying  increases  to  pieceworkers. 
Interpretation  No.  4.  Back  pay  claim. 
Interpretation  No.  5.  Increase  of  salary  claim. 
Interpretation  No.  6.  Station  agent  on  a  certain  railroad  claims  the 
service  he  renders  is  not  special  service  and  that  he  is  entitled  to 
an  increase  under  General  Order  No.  27 — decision. 
Interpretation  No.  7.  Assistant  passenger  ticket  agent's  claim  for 
increase  granted. 

28.  Increased  passenger  and  freight  rates. 

Supplement.  Increased  passenger  and  freight  rates. 

29.  Railway  Board  of  Adjustment  No.  2. 

30.  Settlement  of  interroad  bills  and  accounts. 

31.  Rules    and    regulations    governing    accounting    for    use    of    equipment    or 

facilities. 

32.  June  29,  1918,  apportionment  of  passenger  revenues. 

33.  Appointment  of  G.  A.  Tomlinson  as  Federal  manager  New  York  and  New 

Jersey  Canals. 

34.  Sale  of  refused  and  unclaimed  perishable  and  nouperishable  freight. 
34-A.  Carload  and  less  than  carload  perishable  freight  to  be  sold  at  auction  if 

unclaimed  after  60  days. 

35.  Appointment  of  INI.  J.   Sanders  Federal  manager   Mississippi  and  Warrior 

Waterways. 

36.  Premiums  on  Fidelity  bonds  to  be  charged  to  oiierating  expenses. 

37.  Duties  of  Federal  treasurers. 


144 

3T-A.  Revision  of  General  Order  No.  37. 
38.  Shipping  designation  for  Government  shipments. 

30.  8ale  of  liquors  and  Intoxicants  in  dining  cars,  restaurants,   and  railroad 
stations  under  Federal  control  shall  be  discontinued  immediately. 

40.  Complaints  of  lack  of  c-onsideratiou  and  courtesy  to  public. 

41.  Regulations  governing  disposition  of  interroad  freight  claims  for  loss  and 

damage. 

42.  Elections,  Federal  and  State^Political  activity  for  I'ailruad  officials  and  em- 

ployees prohibited. 

Supplement  No.  1.  Modifications  of  rules  regarding  jiolitical  activity  of 
officials  and  employees. 

43.  Garnishment  or  attachment  or  like  process. 

44.  Chief  accounting  officer  in  general  charge  of  one  or  more  accounting  organ- 

izations of  director  general  shall  be  designated  "  Federal  auditor " — 
duties. 

45.  Daylight  saving  law — clocks  to  be  turned  back. 

46.  Safety  of  employees  and  travelers  upon  ]-ailroads. 

47.  Repairs  to  equipment. 

48.  Further  modification  of  ruling  regarding  political  activity  of  officials  and 

employees  of  railroads  (in  lieu  of  and  as  a  substitute  for  G.  O.  No.  42 
and  Sup.  No.  1  thereto). 

49.  Standard  forms  of  monthly  ticket  and  excess  baggage  reports. 

50.  Lawsuits,   specified — to  be   brought  against   AVilliam   (J.   ^McAdoo,  Director 

General  of  Railroads. 

51.  Seniority  rights  for  employees  v^'ho  have  entered  niilitary  service  uf  Army 

and  Navy. 

52.  Carriers   by   water — rules   and   regulations   governing   ti-ansactions   of — ac- 

counting. 

53.  Agreement  between  regional  directois  and  certain  organizations,  jtroviding 

for  basis  of  compensation  and  regulations  of  employment. 

54.  Tribunal  named  for  adjustment  of  certain  disputes  betv.een  American  Rail- 

way Express  Co.  and  its  employees — Division  of  Traitor  of  the  Ignited 
States  Railroad  Administration  to  deal  with  controversies. 

55.  Collection  of  transportation  charges  and  disposition  of  overcharges,  under- 

charges, and  agency  relief  claims. 

56.  Increase  of  express  operating  revenues. 

57.  Rules  governing  the  inspecti<jn,  selection  and  coopering,  or  rejection  of  cars 

for  bulk  grain  loading,  the  i-ecording  of  loss  of  grain  from  car  by  leakage 
(if  any)  during  transit,  and  the  disposition  of  claims  for  loss  and  damage 
of  grain. 


GENERAL  ORDERS  ISSUED  BY  THE  DIRECTOR  GENERAL 

OF   RAILROADS. 


General.  Order  No.  1. 

Washington,  D.  C,  December  29^  1917. 
To  all  concerned : 

Pursuant  to  the  order  of  tlie  President  of  the  United  States, 
tlnough  the  Secretary  of  War,  the  undersigned,  as  Director  General 
of  Raih'oads,  has  taken  possession  and  assumed  control  of  certain 
transportation  systems  described  in  the  proclamation  of  the  Presi- 
dent, of  which  proclamation  and  order  officers,  agents,  and  employees 
of  said  transportation  systems  are  to  take  inmiediate  and  careful 
notice. 

ALL  EMPLOYEES  TO  CONTINUE. 

In  addition  to  the  })r(>visions  therein  contained  it  is,  until  further 
order,  directed  that — 

1.  All  officers,  agents,  and  emploj'ees  of  such  transportation  sys- 
tems may  continue  in  the  performance  of  their  present  regular  duties, 
reporting  to  the  same  officers  as  heretofore  and  on  the  same  terms  of 
employment. 

2.  Any  officer,  agent,  or  employee  desiring  to  retire  from  his  em- 
ployment shall  give  the  usual  and  seasonable  notice  to  the  proper 
officer  to  the  end  that  there  may  be  no  interruption  or  impairment  of 
the  transportation  service  required  for  the  successful  conduct  of  the 
Avar  and  the  needs  of  general  commerce. 

NATIONAL  NEEDS  PARA3IOUNT. 

3.  All  transportation  systems  covered  by  said  proclamation  and 
order  shall  be  operated  as  a  national  S3^stem  of  transportation,  the 
common  and  national  needs  being  in  all  instances  held  paramount  to 
any  actual  or  supposed  corporate  advantage.  All  terminals,  ports, 
locomotives,  rolling  stock,  and  other  transportation  facilities  are  to 
be  fully  utilized  to  carry  out  this  purpose  without  regard  to  owner- 
ship. 

4.  The  designation  of  routes  by  shii)pers  is  to  be  disregarded  when 
sj^eed  and  efficiency  of  transportation  service  may  thus  be  promoted. 

5.  Traffic  agreements  between  carriers  must  not  be  permitted  to 
interfere  with  expeditious  movements. 

105889°— 19 10  (145) 


146 

THROUGH  ROUTINGS  TO  BE  ESTABLISHED. 

6.  Through  routes  which  have  not  heretofore  been  established  be- 
cause of  short  hauling  or  other  causes  are  to  be  established  and  used 
whenever  expedition  and  efficiency  of  traffic  will  thereby  be  pro- 
moted ;  and  if  difficulty  is  experienced  in  such  through  routing  notice 
thereof  shall,  by  carriers  or  shippers  or  both,  be  given  at  once  to  the 
director  by  wire. 

7,  Existing  schedules  or  rates  and  outstanding  orders  of  the  Inter- 
state Commerce  Commission  are  to  be  observed,  but  any  such  sched- 
ules or  rates  or  orders  as  may  hereafter  be  found  to  conflict  with  the 
purposes  of  said  proclamation  or  with  this  order  shall  be  brought 
immediately  by  wire  to  the  attention  of  the  director. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  No.  2. 

Washington,  D.  C,  Decemher  29^  1917. 

To  the  chief  executive'  of  the  railroads: 

Pursuant  to  the  authority  vested  in  me  by  the  President  of  the 
United  States  in  his  proclamation  of  December  26,  1917,  wherein  it 
was  stated  that  for  purposes  of  accounting,  possession  and  control 
of  the  railroads  shall  date  from  12  o'clock  midnight  on  December  31, 
1917,  you  are  notified  that,  until  otherwise  directed,  no  changes  in 
the  present  methods  of  accounting  as  prescribed  by  the  Interstate 
Commerce  Commission  will  be  required.  The  accounts  of  your  re- 
spective companies  shall  be  closed  as  of  December  31,  1917,  and 
opened  as  of  January  1,  1918,  in  the  same  manner  as  they  have  here- 
tofore been  handled  at  the  close  of  one  fiscal  period  and  the  beginning 
of  another,  and  in  the  same  manner  that  you  should  have  handled 
your  accounts  had  the  Government  not  taken  possession  and  control. 

William  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  Xo.  3. 

All  carriers  by  railroad  subject  to  the  jurisdiction  of  the  under- 
signed are  hereby  ordered  and  directed  forthwith  to  publish  and  file, 
and  to  continue  in  effect  until  further  order,  tariffs  effective  January 
21,  1918,  wherein  demurrage  rules,  regulations,  and  charges  shall  be 
changed  so  as  to  provide — 

A.  (1)  Forty-eiglit  hours  (two  days)  free  time  for  loading  or  un- 
loading on  all  commodities. 


147 

(2)  Twenty-four  hours  (one  day)  free  time  on  cars  held  for  an}' 
other  purpose  permitted  by  tariff. 

B.  Demurrage  charges  per  car  per  day  or  fraction  of  a  day  until 
car  is  released,  as  follows:  Three  dollars  for  the  first  day,  $4  for  the 
second  day,  and  for  each  succeeding  additional  day  the  charge  to  be 
increased  $1  in  excess  of  that  for  the  preceding  day  until  a  maximum 
charge  of  $10  per  car  per  day  shall  be  reached  on  the  eighth  day  of 
detention  beyond  free  time,  the  charge  thereafter  to  be  $10  per  car 
per  day  or  fraction  thereof.  These  charges  will  supersede  all  those 
named  in  existing  tariffs  applicable  to  domestic  freight,  and  specifi- 
cally contemplate  the  cancellation  of  all  average-agreement  provi- 
sions of  existing  tariffs. 

No  change  is  authorized  hereby  to  be  made  in  demurrage  rules, 
regulations,  and  charges  applying  on  foreign  export  freight  awaiting 
ships  at  export  points. 

Upon  my  request,  the  Interstate  Commerce  Commission  has  issued 
Fifteenth  Section  Order  Xo.  225,  authorizing  the  filing  of  tariffs  to 
accord  with  this  order  to  become  effective  January  21,  1918,  on  one 
day's  notice. 

Carriers  shall  immediately  file  said  tariffs  witli  appropriate  State 
commissions  or  other  State  authorities. 

Dated  at  Washington  this  5th  day  of  Januarv,  1018. 

W.  G.  McAdoo, 
Director  General  of  RaUroorl:. 


General  Order  Xo.   1. 

Washington,  January  18,  1918. 

For  purposes  of  operation  the  railroads  of  the  United  States  will 
be  classified  as  Eastern  Railroads,  Southern  Railroads,  and  Western 
Railroads,  defined  as  follows: 

Eastern.  Railroads.- — The  railroads  in  that  portion  of  the  United 
States  north  of  the  Ohio  and  Potomac  Rivers  and  east  of  Lake 
Michigan  and  the  Indiana-Illinois  State  line :  also  those  railroads  in 
Illinois  extending  into  that  State  from  points  east  of  the  Indiana- 
Illinois  State  line :  also  the  Chesapeake  &  Ohio,  the  Xorf oik  &  West- 
ern, and  the  Virginian  Railways. 

Southern  Railroads. — All  railroads  in  that  portion  of  the  United 
States  south  of  the  Ohio  and  Potomac  Rivers  and  east  of  the  Mis- 
sissippi River  except  the  Chesapeake  &  Ohio,  Norfolk  &  Western,  and 
the  Virginian  Railways;  and  also  those  railroads  in  Illinois  and  In- 
diana extending  into  those  States  from  points  south  of  the  Ohio 
River. 

Western.  Railroads. — All  railroads  not  included  in  the  above  defi- 
nitions and,  broadly  speaking,  all  railroads  in  the  territory  west  of 


148 

Lake  Michigan  and  of  the  Indiana-Illinois  State  line  to  the  Ohio 
River  and  west  of  the  Mississippi  River  from  the  Ohio  River  to  the 
Gulf  of  Mexico  excepting  those  railroads  in  Illinois  included  in 
Eastern  territory  and  those  railroads  in  Illinois  and  Indiana  in- 
cluded in  Southern  territory,  as  above  stated. 

Mr.  A.  H.  Smith,  president  of  the  New  York  Central,  is  appointed 
regional  director,  with  office  at  New  York,  in  charge  of  the  operation 
of  eastern  railroads. 

Mr.  C.  H.  Markham,  president  of  the  Illinois  Central,  is  appointed 
regional  director,  with  office  at  Atlanta,  in  charge  of  the  operation  of 
southern  railroads. 

Mr.  R.  H.  Aishton,  president  of  the  Chicago  &  North  Western,  is 
appointed  regional  director,  with  office  at  Chicago,  in  charge  of  the 
operation  of  western  railroads. 

Orders  issued  by  the  gentlemen  named  in  their  capacity  as  re- 
gional directors  will  be  issued  by  authority  of  the  Director  General 
and  will  be  respected  accordingly. 

W.  G.  McAdoo, 
Director  GeTieral  of  Ra'drocul>i. 


General  Okder  No.  5. 

Washington,  Januupy  IS,  1918. 

Pursuant  to  the  authority  vested  in  me  as  Director  General  of  Rail- 
roads by  the  President  of  the  United  States  in  his  proclamation  of 
December  26,  1917, 1  hereby  create  a  Railroad  Wage  Commission  and 
name  as  the  members  thereof,  Franklin  K.  Lane,  Secretary  of  the  In- 
terior; Charles  C.  McChord,  member  of  the  Interstate  Commerce 
Commission;  J.  Harry  Covington,  Chief  Justice  of  the  Supreme 
Court  of  the  District  of  Columbia,  and  William  R.  Willcox  of  New 
^'ork. 

It  is  ordered  and  directed  that: 

The  commission  shall  make  a  general  investigation  of  the  compen- 
sation of  persons  in  the  railroad  service,  the  relation  of  railroad 
wages  to  Avages  in  other  industries,  the  conditions  respecting  wages 
in  different  parts  of  the  country,  the  special  emergency  respecting 
wages  which  exists  at  this  time  owing  to  war  relation  between  differ- 
ent classes  of  railroad  labor. 

The  commission  shall  begin  its  labors  at  once,  and  make  report  to 
the  Director  General,  giving  its  recommendations  in  general  terms 
as  to  changes  in  existing  compensations  that  should  be  made. 

Officers,  agents,  and  employees  of  the  railroads  are  directed  to 
furnisli  to  the  Railroad  Wage  Commission  upon  request  all  informa- 
tion it  mav  require    in  the  course  of  its  investigations. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


149 

Gemeral  Order  No.  6. 

VrASHiNGTON,  Januarij  £8,  19 IS. 
To  officers  and  directors  of  redlroeid  companies: 

During  the  period  of  possession,  operation,  and  Government  con- 
trol of  railroads,  it  is  necessary  that  oflicers,  directors,  and  agents  of 
railroad  companies  be  very  careful  in  the  handling  of  moneys  and  in 
the  dealing  with  transportation  matters.  Without  attempting  at  this 
time  to  give  general  directions,  there  are  a  few  matters  involv- 
ing the  expenditure  of  moneys  for  purposes  having  no  direct  rela- 
tion to  transportation,  which  should  receive  immediate  attention :  as 
■well  as  the  issuance  of  free  transportation. 

It  is  therefore  ordered  that  the  carriers"  operating  revenues  shall 
not  be  expended : 

1.  For  the  payment  of  agents  or  other  persons  Avho  are  employed 
in  any  way  to  affect  legislation. 

2.  For  the  employment  of  attorneys  who  are  not  actually  engaged 
in  the  performance  of  necessary  legal  work  for  the  company. 

3.  For  the  payment  of  the  expenses  of  persons  or  agencies  con- 
stituting associations  of  carriers  unless  such  association  is  approved 
in  advance  by  the  Director  General. 

4.  For  any  political  purpose  or  to  directly  or  indirectly  influence 
the  election  of  any  person  or  an  election  affecting  any  public  measure. 

ISSUANCE    f>F    ITtEE    PASSES. 

No  passes  or  free  transportation  shall  be  issued  by  any  carrier 
under  Federal  control  or  any  official  of  such  carrier  unless  the  issu- 
ance of  such  free  transportation  is  expressly  authorized  by  the  act  of 
Congress  entitled  "An  act  to  regulate  commerce,  approved  February 
4.  1887,  and  amendments  thereto  " ;  and  any  such  passes  or  free  trans- 
l^ortation  heretofore  issued  not  in  conformity  with  said  act  must  be 
recalled. 

This  order  applies  to  all  carriers  under  Inderal  control,  whether 

iiiter&tate  or  intrastate. 

W.  G.  McAdoo, 
Director'  General  of  Railroads. 


Supplement  Xo.  1  to  General,  Order  No.  6. 

Washington,  March  26,  1918. 
On  the  28th  day  of  January,  1918,  General  Order  No.  6  was  issued, 
prohibiting  the  issuance  of  free  transportation  except  as  expressly 
authorized  by  the  act  of  Congress  approved  February  4,  1887,  and 
amendments  thereto. 


150 

The  carriers,  in  obedience  to  said  order,  withdrew  the  passes  or 
mileage  books  which  had  theretofore  been  issued  pursuant  to  con- 
tracts for  newspaper  advertising,  tlie  issuance  thereof  interstate  hav- 
ing been  held  unlawful  by  the  Supreme  Court  of  the  United  States 
(219U.  S.,  48G). 

It  later  came  to  my  attention  that  contracts  for  newspaper  adver- 
tising to  be  paid  for  in  transportation  at  a  fixed  rate  had  been  made 
in  various  sections  of  the  country ;  that  mileage  books  had  been  issued 
pursuant  to  such  contracts;  and  that  the  war  tax  thereon  had  been 
paid  as  required  by  law.  It  seemed  to  me  important,  therefore,  that 
the  legality  of  such  contracts  should  be  passed  upon  by  the  Interstate 
Commerce  Commission.  Accordingly  this,  and  a  number  of  other 
questions  growing  out  of  General  Order  No.  6,  was  referred  by  me  to 
the  Interstate  Commerce  Commission  for  consideration. 

I  am  in  receipt  of  its  report,  dealing  only  with  this  question,  in 

which  it  is  said  : 

In  view  of  the  circumstances  '"'  *  ■'  we  are  inclined  to  suggest  the  advisa- 
bility of  modification  of  the  Director  General's  Order  No.  6  to  the  extent  of  per- 
mitting a  continuance  of  contracts  already  made  for  the  exchange  of  intrastate 
passenger  transportation  for  advertising  to  the  termination  of  such  contracts, 
but  in  no  instance  beyond  the  end  of  the  current  calendar  year.  We  recommend 
such  modification  of  the  order,  but  suggest  that  in  connection  therewith  it  be 
made  entirely  clear  that  it  applies  only  to  contracts  now  in  effect,  and  which  are 
not  repugnant  to  State  requirements ;  that  it  authorizes  only  completion  of  such 
contracts  which  expire  prior  to  the  end  of  the  present  calendar  year,  and  a  con- 
tinuance only  to  the  end  of  the  year  of  any  which  may  by  their  terms  terminate 
at  a  later  date.  It  should  also,  we  think,  be  made  clear  that  transportation 
issued  under  such  contract  may  not  be  used  in  connection  with  other  transporta- 
tion on  any  interstate  journey. 

It  is  therefore  ordered  that  the  said  General  Order  Xo.  6  be,  and 
the  same  is,  modified  accordingly,  and  the  carriers  will  be  permitted 
to  recognize  the  validity  of  said  contracts  and  honor  transportation 
to  the  extent  recommended  by  said  commission. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Supplement  No.  2  to  General  Okder  Xo.  0. 

Washington,  Decemher  31^  1918. 

On  January  28,  1918,  General  Order  Xo.  6  was  issued  prohibiting 
the  issuance  of  free  transportation,  except  as  authorized  by  the  act 
of  Congress  approved  February  4,  1887,  and  amendments  thereto. 

Question  having  arisen  as  to  the  application  of  said  order  to  con- 
tracts between  the  carriers  and  newspaper  publishers  providing  for 
an  exchange  of  intrastate  railroad  transportation  for  advertising,  the 
order  was  supplemented  on  March  26,  1918,  to  permit  the  continuance 


151 

of  such  contracts  to  the  end  of  the  present  calendar  year.  The  au- 
thority to  renew  such  contracts  to  cover  the  legitimate  advertising 
requirements  of  the  carriers,  where  not  repugnant  to  State  require- 
ments, is  hereby  extended  for  the  year  1919.  Contracts  executed  un- 
der this  authority  shall  provide — 

First.  That  the  rates  charged  thereunder  by  the  newspaper  pub- 
lishers shall  not  exceed  their  usual  commercial  rates. 

Second.  That  the  value  of  the  transportation  provided  by  the  car- 
riers shall  be  computed  on  the  basis  of  the  normal  tariif  fare  for  one- 
way tickets. 

Third.  That  transportation  so  issued  shall  not  be  used  upon  any 
part  of  an  interstate  journey. 

W.  G.  McAdoo, 
Director  General  of  Railroach. 


General  Order  Xo.  7. 

All  carriers  by  railroads,  subject  to  the  jurisdiction  of  the  under- 
signed, are  hereby  ordered  and  directed  forthwith  to  publish  and  file, 
and  to  continue  in  effect  until  further  order,  tariffs  in  the  form  shown 
in  the  attached  appendix,  effective  February  10,  1918,  wherein  de- 
murrage rules,  regulations,  and  charges  shall  be  changed  so  as  to 
provide : 

A.  (1)  Forty-eight  hours  (two  days)  free  time  for  loading  or  un- 
loading on  all  commodities. 

(2)  Twenty-four  hours  (one  day)  free  time  on  cars  held  for  any 
other  purpose  permitted  by  tariff. 

B.  That  the  average  agreement  rule  be  permitted,  but  that  it  apply 
solely  to  cars  held  for  unloading. 

C.  That  under  the  average  rule  the  number  of  days  on  which  debits 
accrue  be  made  four  instead  of  five. 

D.  That  the  demurrage  charge  on  all  cars,  after  the  expiration  of 
the  free  time  allowed,  be  $3  for  each  of  the  first  four  days,  $6  for 
each  of  the  next  three  days,  and  $10  for  each  succeeding  day. 

E.  That  the  bunching  rule  be  reinstated  with  the  following  change 
in  paragraph  2: 

Cars  for  unloading  or  reconsigning. — When,  as  the  result  of  the 
act  or  neglect  of  any  carrier,  cars  originating  at  the  same  point  or  at 
intermediate  points  moving  via  the  same  route  and  destined  for  one 
consignee,  at  one  point,  are  bunched  at  originiating  point,  in  transit, 
or  at  destination,  and  delivered  by  the  carrier  in  accumulated  num- 
bers in  excess  of  daily  shipments,  the  consignee  shall  be  allowed  such 
free  time  as  he  would  have  been  entitled  to  had  the  cars  been  de- 
livered in  accordance  with  the  daily  rate  of  shipment.  Claim  to  be 
presented  to  carriers'  agent  within  fifteen  (15)  days. 


152 

These  charges  will  supersede  all  those  named  in  any  existing  tariffs 
applicable  to  carload  freight  except : 

1.  Cars  loaded  with  live  stock. 

2.  Empty  cars  placed  for  loading  coal  at  mines  or  mine  sidings  or 
coke  at  coke  ovens  and  cars  under  load  at  mines  or  mine  sidings  or 
coke  at  coke  ovens. 

3.  Foreign  export  freight  awaiting  ships  at  ports. 

4.  Coal  for  transshipment  at  tidewater  or  lake  ports. 

6.  Empty  private  cars  stored  on  railroad  or  private  tracks,  pro- 
Tided  such  cars  have  not  been  placed  or  tendered  for  loading  on  the 
orders  of  a  shipper. 

and  specifically  contemplate  the  concellation  of  all  conflicting  pro- 
visions of  existing  tariffs. 

Upon  my  request  the  Interstate  Commerce  Commission  has  issued 
Fifteenth  Section  Order  No.  300,  authorizing  the  filing  of  tariffs  to 
accord  with  the  appendix  hereto  and  to  become  effective  February  10, 
1918,  on  one  day's  notice. 

Carriers  shall  immediately  file  said  tariffs  with  appropriate  State 
commissions  or  other  State  authorities. 

Order  No.  3  is  hereby  withdrawn  and  canceled. 

Washington,  D.  C.  January  29,  1918. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Appendix  to  Order  No.  7  of  the  Dip.ector  General  or  Railroads — 
National  Car  Demurrage  Rules. 

EFFECTIVE  FEBRUARY   10.    lOlS. 

CHANGES INCREASES. 

Rules.  Instructions    and    Explanations. 

Rule    1. — Cors-    subject    to   rules.  To  Hui.e  1. — Cars  subject  to  rules. 

Cai's   held    for   or  by   consignors   or  Cars  loaded  with  company  material 

oonsiiinees  for  loadins,  unloading,  for-  for  use  of  and  consigned  to  the  rail- 
warding  directions,  or  for  any  other  road  in  whose  possession  the  cars  are 
purpose,  are  subject  to  these  demur-  held  are  not  subject  to  dennirrage,  and 
rage  rules,  except  as  follows:  shall  not  be  reported  by  agents  unless 

specitically  instructed  so  to  do. 

Empty  cars  placed  for  loading  with 
company  material  are  subject  to  de- 
nnirrage, unless  the  loading  is  done  by 
the  railroad  company  for  which  the 
material  is  intended  and  on  its  tracks. 
Section  A. — Cars  loaded  \\ith  live  Section  A. — Empty  cars  placed  for 
stock.  loading  live  stock  by  shippers  are  not 

exempt  and  should  be  reported. 

Live  poultry  is  not  considered  as 
live  stock,  and  cars  so  loaded  are  sub- 
ject to  demurrage. 


153 


Section"  B. — Empty  cars  placed  for 
loading  coal  at  mines  or  mine  sid- 
in.crs,  01'  coke  at  coke  ovens,  and  cars 
under  load  with  coal  at  mines  or  mine 
sidings,  or  coke  at  coke  ovens. 

Note. — Delay  to  cars  specified  in  Sec- 
tion B  will  be  regulated  by  proper  Car 
Distribution  Rules. 

Section  C. — Empty  private  cars 
stored  on  carrier's  or  private  tracks, 
provided  sucli  cars  liave  not  been 
placed  or  tendered  for  loading  on  tlie 
orders  of  a  shipper. 


Note. — Private  cars  while  in  railroad 
service,  whether  on  carrier's  or  private 
tracks,  are  subject  to  these  demurrage 
rules  to  the  same  extent  as  cars  of  railroad 
ownership. 

(Empty  private  cars  are  in  railroad  serv- 
ice from  the  time  they  are  placed  by  the 
carrier  for  loading  or  tendered  for  loading 
on  the  orders  of  a  shipper.  Private  cars 
under  lading  are  in  railroad  service  until 
the  lading  is  removed  and  cars  are  regu- 
larly released.  Cars  which  belong  to  an 
industry  performing  its  own  switching 
service  are  in  railroad  service  from  the 
time  they  are  placed  by  the  industry  upon 
designated  interchange  tracks  and  thereby 
tendered  to  the  carrier  for  movement.  If 
such  cars  are  subsequently  returned  empty 
they  are  out  of  service  when  withdrawn  by 
the  industry  from  the  interchange ;  if  re- 
turned under  load,  railroad  service  is  not 
at  an  end  until  the  lading  is  duly  re- 
moved.) 

Ri'LE  2. — Free   time   all  owed. 

Section  A. — Forty-eight  hours'  (two 
days)  free  time  will  be  allowetl  fta- 
loading  or  unloading  on  all  com- 
modities. 

Note.- — if  a  consignee  wishes  his  car 
held  at  any  break-up  yard  or  a  hold-yard 
before  notification  and  placement,  such  car 
will  be  subject  to  demurrage.  That  is  to 
say,  the  time  held  in  the  break-up  yard 
will  be  included  within  the  48  hours  of 
free  time.  If  he  wishes  to  exempt  his 
cars  from  the  imposition  of  demurrage  he 
must  either  by  general  orders  given  to  the 
carrier  or  by  specific  orders  as  to  incoming 
freight  notify  the  carrier  of  the  track  upon 
which  he  wishes  his  freight  placed,  in 
which  event  he  will  have  the  full  48  hours' 
free  time  from  the  time  when  the  place- 
ment is  made  upon  the  track  designated. 


Section  C. — Empty  private  cars 
stored  on  tracks  switched  by  carriers, 
taken  for  loading  witlumt  order  or 
requisition  from  shipper,  and  without 
formal  assignment  by  carrier's  agent, 
shall  be  recorded  as  placed  for  load- 
ing when  actual  loading  is  begun. 

Note. — Private  ears  belonging  to  an  in- 
dustry which  does  its  own  switching, 
placed  npon  an  interchange  track  for  for- 
warding and  refused  by  the  carrier's  in- 
spector, shall  be  released  from  demurrage 
if  withdraviTi  by  the  industry  from  the 
interchange  track  within  twenty-four  (24) 
hours  after  rejection. 

Private  cars  are  not  in  railroad  service — 

(a)  When  loaded  and  unloaded  on  the 
tracks  of  the  owner  and  not  moved  over  the 
tracks  of  a  carrier. 

(6)  When  placed  by  the  carrier  for 
loading  on  the  tracks  of  the  owner  and  re- 
fused by  the  inspector. 


To  Rule  2. — Free  time  allowed. 

Section  A. — When  the  same  car  is 
both  unloaded  and  reloaded,  each 
tiansaction  will  be  treated  as  inde- 
pendent of  the  other.  Tliis  will  also 
apply  to  industries  performing  tlieir 
own  switching  service,  in  which  case 
the  industry  must  notify  the  carrier 
date  and  time  car  was  unloaded. 


154 


Section  B. — Twenty-four  hours" 
(one  clay)  free  time  will  be  allowed — 

1.  When  cars  are  held  for  switching 

orders. 

Note. — Cars  held  for  switching  orders 
are  cars  which  are  held  by  a  carrier  to 
be  delivered  to  a  consignee  within  switch- 
ing limits  and  which  when  switched  be- 
come subject  to  an  additional  charge  for 
such  switching  movement. 

2.  When  cars  are  held  for  recon- 
signment  or  reshipment  in  same  car 
received. 

XoTE. — A  reconsignment  is  a  privilege 
permitted  by  tariff  under  which  the  origi- 
nal consignee  has  the  right  of  diversion. 
In  event  of  the  presence  of  such  a  privi- 
lege in  the  tariff  24  hours'  free  time  is 
allowed  for  the  exercise  of  that  privilege 
by  the  consignee.  A  reshipment  under 
this  rule  is  the  making  of  a  new  contract 
of  shipment  by  which  under  a  new  rate 
the  consignee  forwards  the  same  car  to 
another  destination. 

3.  When  cars  destined  for  delivery 
to  or  for  forwarding  by  a  connecting 
line  are  held  for  surrender  of  bill  of 
lading  or  for  payment  of  lawful 
freight  charges. 

4.  When  cars  are  held  in  transit 
and  placed  for  inspection  or  grading. 
At  stations  where  grain  and  hay  must 
be  inspected  or  graded,  the  consignee 
agreeing  with  the  carrier  in  writing, 
for  file  at  the  station,  to  accept  the 
bulletining  of  tlie  cars  as  due  and  ade- 
quate notice  of  arrival,  the  bulletins 
must  be  poste<l  by  9  a.  m.  of  each  day, 
showing  the  previous  twenty-four 
(24)  nours'  receipts,  and  the  free  time 
(twenty-f(mr  hours)  is  to  be  calcu- 
lated from  the  tirst  7  a.  m.  thereafter. 
Wlicro  there  is  no  agreement  for  bul- 
letining of  cars,  the  free  time  must 
be  calculated  from  the  first  7  a.  m. 
after  the  day  on  which  notice  of  ar- 
rival is  sent  or  given  to  the  consignee. 

5.  When  cars  are  stopped  in  transit 
to  complete  loading,  to  partly  unload, 
or  to  partly  unload  and  partly  reload 
(when  such  privilege  of  stopping  ia 
transit  is  allowed  in  the  tariffs  of 
the  carriers). 

6.  On  cars  containing  freight  in 
bond  for  customs  entry  and  Govern- 
ment inspection. 


Section  B. — 1.  Applies  to  cars  held 
on  this  railroad  for  disposition.  (See 
Section  B-2.) 


Section  B. — 2.  Applies  to  cars  held 
in  transit  for  reconsignment  or  on  or- 
der of  consignor  or  consignee.  (See 
Rules  3,  Section  B,  and  4,  Section  B.) 
A  change  of  consignee  after  arrival  of 
car  at  destination  is  not  a  reconsign- 
ment under  these  rules  unless  a  di- 
version provided  by  tariff  is  involved. 


155 


Section  C. — Cars  containing  freifiht 
for  transshipment  to  vessel  will  be  al- 
lowed such  free  time  at  the  port  as 
may  be  provided  in  the  tariffs  of  the 
carriers. 

Rule  3. — Computing  time. 

Note. — In  computing  time,  Sundays  and 
legal  holidays  (national.  States,  and  mu- 
nicipal) will  be  excluded,  except  as  other- 
wise provided  in  Section  A  of  Rule  9. 
When  a  legal  holiday  falls  on  a  Sunday, 
the  following  Monday  will  be  excluded. 

Section  A. — On  cars  held  for  load- 
ing, time  will  be  computed  from  the 
first  7  a.  m.  after  placement  on  public- 
delivery  tracks.  See  Rule  6  (Cars  for 
Loading), 

Section  B. — 1.  On  cars  held  for  or- 
ders, time  will  be  computed  from  the 
first  7  a.  m.  after  the  day  on  which 
notice  of  arrival  is  sent  or  given  to  the 
consignee. 

2.  When  orders  for  cars  held  foi- 
disposition  or  reconsignment  are 
mailed,  such  orders  will  release  cars 
at  7  a.  m.  of  the  date  orders  are  re- 
ceived at  the  station  where  the  freight 
is  held,  provided  the  orders  are  mailed 
prior  to  the  date  received,  but  orders 
mailed  and  received  on  the  same  date 
release  cars  the  following  7  a.  m. 

Section  C. — On  cars  held  for  un- 
loading, time  will  be  computed  from 
the  first  7  a.  m.  after  placement  on 
public-delivery  tracks,  and  after  the 
day  on  which  notice  of  arrival  is  sent 
or  given  to  consignee. 

Section  D. — On  cars  to  be  delivered 
on  any  other  than  public-delivery 
tracks,  time  will  be  computed  from 
the  first  7  a.  m.  after  actual  or  con- 
structive placement  on  such  tracks. 
See  Rule  4  (Notification)  and  Rules  5 
and  6  (Constructive  Placement). 

Note. — "  Actual  placement  "  is  made 
when  a  car  is  placed  in  an  accessible  posi- 
tion for  loading  or  unloading  or  at  a  point 
previously  designated  by  the  consignor  or 
consignee. 

Section  E.^ — On  cars  to  be  deliv- 
ered on  interchange  tracks  of  indus- 
trial plants  performing  their  own 
switching  service,   time   will   be   com- 


To  Rule  3. — Conipiitiur/  time. 

Note. — The    exemption    of    holidays    doea 
not  include  half  holidays. 


Section  B. — Agents  will  in  all  cases 
attach  to  orders  received  by  mail  the 
envelope  inclosing  .such  orders,  that 
there  may  be  on  file  a  record  of  re- 
lease. 


156 


putetl  from  the  first  7  a.  lu.  following 
actual  or  constructive  placement  on 
such  interchangf  tracks  until  return 
thereto.  See  Rule  4  (Notification) 
and  Rules  5  and  6  (Constructive 
Placement).  Cars  returned  loaded 
Avill  not  be  recorded  released  until 
necessary  billing  instructions  are 
given. 

Kri,E  4. — Notification. 

Section  A. — Notice  shall  be  sent  or 
given  consignee  by  carrier's  agent  in 
Avriting,  or  as  otherwise  agreed  to  by 
carrier  and  consignee,  within  twenty- 
four  hours  after  arrival  of  cars  and 
billing  at  destination,  such  notice  to 
contain  point  of  shipment,  car  initials 
and  numbei's,  and  the  contents,  and,  if 
transferred  in  transit,  the  initials  and 
number  of  the  original  car.  In  case 
car  is  not  placed  on  public-delivery 
track  Avithin  twenty-four  hours  after 
notice  of  arrival  has  been  sent  or 
given,  a  notice  of  placement  shall  be 
.sent  or  given  to  consignee. 

Section  B. — When  cars  are  ordered 
stopped  in  transit  notice  shall  be  sent 
or  given  the  party  ordering  the  cars 
stopped  upon  arrival  of  cars  at  point 
of  stoppage. 

Sfxtion  C. — Delivery  of  cars  upon 
private  or  industrial  interchange 
tracks,  or  written  notice  sent  or  given 
to  consignee  of  readiness  to  so  de- 
liver, will  constitute  notification 
thereof  to  consignee. 

Section  D. — In  all  cases  where  no- 
tice is  required  the  removal  of  any 
part  of  the  contents  of  a  car  by  the 
consignoi-  shall  be  considered  notice 
thereof  to  the  consignee. 


To  Rule  4. — Xoiification. 

Agents  are  cautioned  that,  in  order 
to  be  legal,  notices  of  the  arrival  of 
cars  must  be  in  writing,  and  must  con- 
tain all  of  the  items  of  information 
specified  by  this  rule.  An  impression 
copy  should  be  retained,  and  when  no- 
tice is  sent  or  given  on  a  postal  card 
the  impression  should  be  of  both  sides. 
If  delivered  by  messenger,  •  a  receipt 
should  be  taken  for  the  notice  when 
practicable,  in  order  to  avoid  possi- 
bilities of  dispute. 

In  many  cases  it  is  desirable  for 
both  consignee  and  carrier  that  no- 
tices be  given  in  some  other  way,  es- 
pecially by  telephone,  but  such  notices 
are  not  legal  under  this  rule  except 
when  "  agreed  to  by  carrier  and  con- 
signee." In  case  consignees  desire  or 
will  accept  some  notice  other  than  the 
written  notice,  agents  will  require  a 
written  request  from  them  to  that 
etfect,  and  this  request,  agreed  to  l\v 
the  agent,  must  be  retained  on  file  in 
order  to  legalize  the  notice.  AYhere 
the  telephone  form  of  notice  is 
adopted,  the  agent  should  require  the 
name  of  the  receiver  of  the  message 
v.hen  the  notice  is  given.  In  the  ab- 
sence of  specific  agreements  to  the 
contrary,  however,  agents  must  not 
fail  to  send  or  give  the  regular  writ- 
ten notice  required  by  this  rule. 
Wlien  consignee  is  notified  through 
medium  of  United  States  mail,  a  rec- 
ord shall  be  kept  of  the  date  and  hour 
each  notice  by  United  States  mail  is 
deposited  in  United  States  mail. 

When  address  of  consignee  does  not 
appear  on  billing  and  is  not  positively 
known,  the  notice  of  arrival  must  be 
addressed  to  the  billed  destination  of 


157 


the  shiinueut  and  deposited  iu  United 
States  mails  (iu  such  case  preferably 
inclosed-  in  two-cent  stamped  envelope 
bearing  return  address,  same  to  be 
preserved  on  file  if  returned).  See 
Rule  3,  Section  B  and  Section  C. 

Attention  is  also  directed  to  the  fact 
that  when  cars  are  for  delivei*y  to 
public-team  tracks,  and  placement  is 
delayed  for  more  than  twenty-four 
(24)  hours  after  notice  of  arrival  is 
sent  or  given,  a  notice  of  placement 
must  also  be  given  to  the  consignee, 
and  the  free  time  for  unloading  com- 
puted according  to  the  notice  of  place- 
ment. 


Rule  5. — Placinff   cars   for  unloading.      To  Rule  ."j.- 


-riacin<j  cars  for  unJoad- 


Section  A. — When  delivery  of  cars 
consigned  or  ordered  to  any  other  than 
public-delivery  tracks  or  to  industrial 
interchange  tracks  can  not  be  made  on 
account  of  the  act  or  neglect  of  the 
consignee,  or  the  inability  of  the  con- 
signee to  receive,  delivery  avIII  be  con- 
sidered to  have  been  made  when  the 
cars  were  tendered.  The  carriers' 
agent  must  send  or  give  the  consignee 
written  notice  of  all  cars  he  has  been 
unable  to  deliver  because  of  the  con- 
dition of  the  private  or  interchange 
tracks,  or  because  of  other  conditions 
attributable  to  consignee.  This  will 
be  considered  constructive  placement. 
See  Rule  4  (Notification). 

Section  B. — When  delivery  can  not 
be  made  on  specially  designated  pub- 
lic-delivery tracks  on  account  of  such 
tracks  being  fully  occupied,  or  from 
other  cause  beyond  the  control  of  the 
carrier,  the  carrier  shall  send  or  give 
the  consignee  notice  in  writing  of 
its  intention  to  make  delivery  at  the 
nearest  point  available  to  the  con- 
signee, naming  the  point.  Such  de- 
livery shall  be  made  unless  the  con- 
signee shall  before  delivery  indicate 
a  preferred  available  point,  in  which 
case  the  preferred  delivery  shall  be 
made. 


Section  A. — This  will  apply  to  such 
cars  as  consignees  located  on  switch- 
ing line  are  unable  to  receive  and 
which,  for  that  reason,  the  switching 
line  is  unable  to  receive  from  carrier 
line.  The  carrier  line  will  advise  the 
switching  line  of  point  of  shipment, 
car  initials  and  number,  contents  and 
consignee,  and  if  transferred  in  transit 
the  initials  and  number  of  the  original 
car;  the  s\Antching  line  will  notify  con- 
signee and  put  sucli  cars  under  con- 
structive iDlacement. 


158 


Rule  6. — Cars  for  loading. 

Section  A.— Cars  for  loading  will 
be  considered  placed  when  such  cars 
are  actually  placed  or  held  on  orders 
of  the  consignor.  In  the  latter  case 
the  agent  must  send  or  give  the  con- 
signor written  notice  of  all  cars  which 
he  has  been  unable  to  place  because 
of  condition  of  the  private  track  or 
because  of  other  conditions  attribut- 
able to  the  consignor.  This  will  be 
considered  constructive  placement. 
See  Rule  3,  Section  A  (Computing 
Time). 

Section  B. — When  empty  cars, 
placed  for  loading  on  orders,  are  not 
used,  demurrage  will  be  charged  from 
the  first  7  a.  m.  after  placing  or  ten- 
der until  released,  with  no  time  al- 
lowance. 

Section  C. — Cars  for  loading  are 
not  released  luitil  loading  is  com- 
pleted and  proper  billing  instructions 
furnished. 

Section  D. — Cars  received  from 
switching  lines  and  held  by  carrier 
lines  for  billing  instructions  are  sub- 
ject to  demurrage  charges  from  the 
first  7  a.  m.  after  arrival  on  this  rail- 
road until  billing  instructions  are  re- 
ceived, with  no  free  time  allowance 
and  without  notice. 

Section  E. — If  an  empty  car  is  ap- 
propriated without  being  ordered,  it 
shall  be  considered  as  having  been 
ordered  and  actually  placed  at  the 
time  so  appropriated.  If  not  loaded 
outbound,  such  car  is  subject  to  Sec- 
tion B  of  this  rule. 

Rule  7. — Demurrage  elmrge. 

Section  A. — On  cars  not  subject  to 
rule  9  (average  agreement)  :  After  the 
expiration  of  free  time  allowed,  the 
following  charges  per  car  per  day,  or 
fi-action  of  a  day,  will  be  made  until 
car  is  released : 

For  eacli  of  the  first  four  days,  .$3. 

For  each  of  the  next  three  days,  $6. 

For  each  succeeding  day,  $10. 

Section  B. — The  charges  on  cars 
subject  to  average  agreement  are  set 
forth  in  rule  9. 


To  Rule  7. — Demurrage  charge. 

(a)  Charges  accruing  under  those 
rules  must  be  collected  in  the  same 
manner  and  with  the  same  regularity 
and  promptness  as  other  transporta- 
tion charges,  and  agents  will  in  like 
manner  be  lield  responsible  for  same. 

(b)  Freight  upon  which  charges 
have  accrued  under  these  rules  shall 
not  be  removed  from  railroad  prem- 
ises until  charges  thereon  have  been 
paid.  When  consignor  or  consignee 
refuses  to  pay,  agent  will  hold  freight 


159 

until  payment  is  made  and  continue 
to  charge  until  freight  is  removed ;  or, 
at  his  option,  may  send  freight  to  pub- 
lic warehouses  or  yards,  where  the 
same  will  be  held  subject  to  storage 
charges  and  all  other  charges. 

(c)  When  cars  are  detained  on 
private  or  specifically  designated 
tracks  for  unloading  beyond  the  time 
allowed  and  demurrage  charges  are 
not  promptly  paid,  agent  must,  upon 
advice  to  that  effect  from  the *, 

*  Note. — "  Demurrage  manager  "  or  of- 
ficial in  charge  of  demurrage  under  the 
organization  in  effect  on  each  road, 
after  sending  or  giving  not  less  than 
five  (5)  days'  written  notice,  decline 
to  switch  cars  to  private  or  specifically 
designated  tracks  for  such  parties,  and 
thereafter  tender  freight  from  public- 
team  tracks  and  collect  all  charges 
before  delivery,  until  satisfactory 
guaranty  is  given  that  demurrage 
rules  will  be  complied  with. 

(d)  Charges  that  accrue  while  cars 
are  held  for  loading,  for  receipt  of  bill- 
ing instructions,  or  for  reconsignment 
or  distribution  orders  will  be  collected 
by  agents  of  the  forwarding  line  when 
such  shipments  are  ordered  to  points 
within  the  switching  limits.  When 
charges  accrue  on  shipments  ordered 
or  destined  to  points  beyond  switch- 
ing limits,  such  charges  should  be 
collected  by  the  agent  of  the  forward- 
ing line.  Such  charges  may  be  billed 
forward  as  advances,  providing  the 
charges  are  guaranteed  in  writing  and 
entered  on  the  shipping  tickets  and 
bills  of  lading  and  exhibited  on  the 
waybills  as  "  Demurrage  charges,  ad- 
vanced  and  guaranteed." 

When  demurrage  charges  accrue  on 
cars  held  in  transit  by  request  of  con- 
signor or  consignee,  as  agents  can 
neither  enter  the  charges  on  bills  of 
lading  nor  obtain  guaranty  from  con- 
signor or  consignee  without  unneces- 
sary delay  to  the  cars,  the  charges 
must  either  be  billed  forward  as  ad- 
vances or  separate  bills  made  and 
charges  collected  from  the  party  or- 
dering the  cars  held. 


160 


Rule  8. — Claims. 

No  demurrage  charges  shall  be  col- 
lected under  these  rules  for  detention 
of  cars  through  causes  named  below. 
Demurrage  charges  assessed  or  col- 
lected under  such  conditions  shall  be 
promptly  canceled  or  refunded  by  the 
carrier. 

CAUSES. 

Section  A. — Weather  interference. 

1.  When  the  condition  of  the  weath- 
er during  the  prescribed  free  time  is 
such  as  to  make  it  impossible  to  em- 
ploy men  or  teams  in  loading  or  un- 
loading, or  impossible  to  place  freight 
in  cars,  or  to  move  it  from  cars,  with- 
out serious  injury  to  the  freight,  the 
free  time  shall  be  extended  until  a 
total  of  48  hours  free  from  such 
weather  interference  shall  have  been 
allowed. 

2.  When  shipments  are  frozen  while 
in  transit  so  as  to  prevent  unloading 
during  the  prescribed  free  time.  This 
exemption  shall  not  include  shipments 
Avhich  are  tendered  to  consignee  in 
condition  to  unload.  Under  this  rule 
consignee  will  be  required  to  make 
diligent  effort  to  unload  such  ship- 
ments, and  shall  not  be  entitled  to  ad- 
ditional time  unless  within  the  pre- 
scribed free  time  he  shall  serve  upon 
the  carrier's  agent  a  written  state- 
ment that  the  lading  was  frozen  upon 
arrival. 

3.  When,  because  of  high  water  or 
snowdrifts,  it  is  impossible  to  get  to 
cars  for  loading  or  unloading  during 
the  prescribed  free  time. 

This  rule  shall  not  absolve  a  con- 
signor or  consignee  from  liability  for 
demurrage  if  othei's  similarly  situated 
and  under  the  same  conditions  are 
able  to  load  or  unload  cars. 

Section  B. — Bunching. 

1.  Cars  for  loading. — When,  by  rea- 
son of  delay  or  irregularity  of  the  cai'- 
rior  in  filling  orders,  cars  are  bunched 
and  placed  for  loading  in  accumulated 
ninnbers  in  excess  of  daily  orders,  the 
shipper  shall  be  allowed  such  free 
time  for  loading  as  he  would  have 
been  entitled  to  had  the  cars  been 
placed  for  loading  as  ordered. 


To  RX'LE  8. — Claims. 

Section  A. — 1.  When  a  consignor  or 
consignee  claims  exemption  under  this 
rule,  agents  must  obtain  a  written 
statement  from  him  to  the  effect  that 
the  conditions  were  such  as  are  set 
forth  in  the  rule. 


161 


2.  Cars  for  unloading  or  reconsiyn- 
iny. — Wlien,  a.s  the  result  of  the  act  or 
neglect  of  any  t-arrier,  cars  originatinp: 
at  the  same  point  or  at  intermediate 
points,  moving  via  the  same  route  and 
destined  for  one  consignee,  at  one 
point,  are  bunched  at  originating  point, 
in  transit,  or  at  destination,  and  de- 
livered by  this  railroad  in  accumulate<l 
numbers  in  excess  of  daily  shipments, 
the  consignee  shall  be  allowed  such 
free  time  as  he  would  have  been  en- 
titled to  had  the  cars  been  delivered 
in  accordance  with  the  daily  rate  of 
shipment.  Claim  to  be  presented  to 
carrier's  agent  within  fifteen  (15) 
days. 

Section  C — Demand  of  overcharge. 

When  the  carrier's  agent  demands 
the  iMiyment  of  transiwrtation  charges 
in  excess  of  tariff  authority. 


Section  D. — Dclai/ed  or  improper 
notice  by  carrier. — When  notice  has 
been  sent  or  given  in  substantial  com- 
pliance with  the  requirements  as  speci- 
fied in  these  rules,  the  consignee  shall 
not  thereafter  have  the  right  to  call 
in  question  the  sufficiency  of  such 
notice  unless  within  forty-eight  hours 
from  7  a.  m.  following  the  day  on 
which  notice  is  sent  <n'  given,  he  shall 
serve  upon  the  delivering  carrier  a  full 
written  statement  of  his  objections  to 
the  sufficiency  of  such  notice. 

1.  When  claim  is  made  that  a  mailed 
notice  has  been  delayed  the  postmark 
thereon  shall  be  acceptetl  as  indicating 
the  date  of  the  notice. 

2.  When  a  notice  is  mailed  by  car- 
rier on  Sunday,  a  legal  holiday,  or 
after  .8  p.  m.  on  other  days  (as  evi- 
denced by  the  postmark  thereon)  the 
consignee  shall  be  allowed  five  hours 
additional  free  time,  provided  he  shall 
mail  or  send  to  the  carrier's  agent, 
within  the  first  twenty-four  hours  of 
free  time,  written  advice  that  the 
notice  had  not  been  received  until 
after  the  free  time  had  begun  to  run ; 
in  case  of  failure  on  the  part  of  con- 

105889°— 19 11 


Section  B. — 2.  When  claim  is  made 
for  exemption  from  demurrage  on  ac- 
count of  bunching  of  cars  for  unload- 
ing or  reconsigning,  as  provided  in  this 
rule,  agents  will  require  written  state- 
ment of  all  cars,  with  date  and  ]>oint 
of  shipment  of  each,  as  evidenced  by 
the  bills  of  lading,  if  necessary,  and 
forward  same  to  the *,  with  re- 
port showing  exempti<m  demanded  on 
account  of  such  bunching. 


Sections  C  and  E. — When  demur- 
rage should  not  be  collected  tinder 
these    sections,    agents    will    make    re- 

lX)rt  to  the *,  together  with  copy 

of  billing  and  all  information  in  their 
possession,  showing  where  the  ermr  oc- 
curred. 

*NoTE. — "Demurrage  manager"  o:-  offi- 
cial in  charge  of  demurrage  under  the 
organization    in   effect   on    each    road. 


162 


signee  so  to  notify  carrier's  agent,  no 
additional  free  time  sliall  be  allowed. 

Section  E. — Railroad  errors  which 
prevent  proper  tender  or  delivery. 

Under  this  rule  demurrage  will  be 
charged  on  the  basis  of  the  amount 
that  would  have  accrued  but  for  such 
errors.  This  also  applies  in  the  case 
of  constructively  placed  cars  being 
"  run-around  "  by  actually  placing  re- 
cent arrivals  ahead  of  previous  ar- 
rivals. 

Section  F. — Delay  hy  United  States 
customs. — Such  additional  free  time 
shall  be  allowed  as  has  been  lost 
through  such  delay. 

Rule  9. — Average  acjreetncnt. 

When  a  consignee  enters  into  the 
following  agreement,  the  charge  for 
detention  to  cars,  on  all  cars  held  for 
unloading  by  such  consignee,  shall  be 
computed  on  the  basis  of  the  average 
time  of  detention  to  all  such  cars  un- 
loaded and  released  during  each  calen- 
dar month ;  such  average  detention 
and  charge  to  be  computed  as  follows: 

Section  A. — One  credit  will  be  al- 
lowed for  each  car  unloaded  and  re- 
leased within  the  first  twenty-four 
(24)  hours  of  free  time.  After  the  ex- 
piration of  forty-eight  (48)  hours'  free 
time,  one  debit  per  car  per  day,  or 
fraction  of  a  day,  will  be  charged  for 
each  of  the  first  four  days.  In  no  case 
shall  more  than  one  credit  be  allowed 
on  any  one  car,  and  in  no  case  shall 
more  than  four  credits  be  applied  in 
cancellation  of  debits  accruing  on  any 
one  car.  When  a  car  has  accrued  four 
debits,  a  charge  of  $6  per  car  per  day, 
or  fraction  of  a  day,  will  be  made  for 
each  of  the  first  three  days  thereafter, 
and  for  each  succeeding  day,  or  frac- 
tion of  a  day,  the  charge  will  he  $10. 
After  a  car  has  accrued  four  debits*, 
the  charges  named  herein  will  apply 
on  all  subsequent  Sundays  and  legal 
holidays. 

Section  B. — At  the  end  of  the  calen- 
dar month,  the  totnl  number  of  cre<litM 
will  be  deducted  from  the  total  num- 
ber of  debits  and  $3  per  debit  will  be 


Section   E.- 
Section  C. 


-See  instructions  under 


To  TiiLE  0. — Average  agreement. 

Application  for  agreement  provided 
for  in  Rule  9  will  be  forwarded  to  the 
• *,  and  when  executed  instruc- 
tions will  be  furnished  the  agent  as  to 
the  method  of  reporting. 

*  Note. — "  Demurrage  manager  "  or  of- 
ficial in  charge  of  demurrage  under  the 
organization  in  effect  on  each  road. 


163 


charged  for  the  remainder.  If  the 
credits  equal  or  exceed  the  debits,  no 
charge  will  be  made  for  the  detention 
of  the  cars  and  no  payment  will  be 
made  to  consignee  on  account  of  such 
excess  of  credits ;  nor  shall  the  credits 
in  excess  of  the  debits  of  anj-  one 
month  be  considered  in  computing  the 
average  detention  for  another  month. 

Section  C. — A  consignee  who  enters 
into  this  average  agreement  shall  not 
be  entitled  to  cancellation  or  refund  of 
demurrage  charges  under  Section  A, 
paragraphs  1  and  3,  or  Section  B  of 
Rule  8. 

Section  D. — A  consignee  who  en- 
ters into  this  average  agreement  may 
be  required  to  give  sufficient  security 
to  the  carrier  for  the  payment  of  bal- 
ances against  him  at  the  end  of  each 
month. 

AGREEMENT. 

Rail Company: 

Being  fully  acquainted  with  the 
terms,  conditions,  and  effect  of  the  av- 
erage basis  for   settling  for  detention 

to  cars  as  set  forth  in ,  being 

the  car  demurrage  rules  governing  at 
all  stations  and  sidings  on  the  lines 

of  said  rail company,  except 

as  shown  in  said  tariff,  and  being  de- 
sirous of  availing  (myself  or  our- 
selves) of  this  alternate  method  of  set- 
tlement  (I  or  we)  do  expressly  agree 

to  and  with  the Rail 

Company  that  with  respect  to  all  cars 
which  may,  during  the  continuance  of 
this  agreement,  be  handled  for  (my  or 

our)  account  at (Station)   (I 

or  we)  will  fully  observe  and  comply 
with  all  the  terms  and  conditions  of 
said  rules  as  they  are  now  published 
or  may  hereafter  be  lawfully  modified 
by  duly  published  tariffs,  and  will 
make  prompt  payment  of  all  demur- 
rage charges  accruing  thereunder  in 
accordance  with  the  average  basis  as 
therein  established  or  as  hereafter 
lawfully  modified  by  duly  published 
tariffs. 

This   agreement    to  be   effective   on 

and  after  the day  of , 

19 ,  and  to  continue  until  terminated 

by   written   notice   from   either   party 


164 


to  the  other  which  notic-e  shall  become 
effective  on  the  tirst  day  of  the  month 
succeeding  that   in  which  it  is  iriven. 

Approvetl  and  accepted , 

19—,  by  and  on  behalf  of  the  above- 
named   rail company  liy 


Supplement  No.   1   to  General  Order  No.   7. 

AVashington,  D.  C,  September  28,  1918. 
It  is  ordered  that  Order  No.  7  be,  and  the  same  is  hereby,  supple- 
mented by  amending  the  provisions  of  the  appendix  attached  thereto 
in  the  manner  and  to  the  extent  shown  in    the  appendix  hereto  at- 
tached. 

It  is  further  ordered  that  the  tariffs  be  reissued  as  amended  by  this 
supplement,  effective  October  15,  1918,  by  publishing  and  filing  with 
the  Interstate  Commerce  Commission  on  not  less  than  five  days'  notice 
the  tariffs  to  bear  the  following  legend: 

This  schedule  is  published  and  filed  with  the  Interstate  Commerce  Commis- 
sion under  General  Order  No.  7  of  the  Director  General,  United  States  Railroad 
Administration,  dated  January  29,  1918,  and  the  supplement  thereto  dated  the 
28th  day  of  September,  1918,  and  is  applicable  to  both  interstate  and  intrastate 
traffic. 

Given  under  mv  hand  this  28th  day  of  September,  1918. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Appendix  to  Supplement  No.   1  to  General  Order  No.  7. 
national  car  demurrage  rules. 

Rule  1.— Section  C  together  with  instructions,  explanations,  and  the  nut(s  pub- 
lished in  connection  therewith  are  amended  to  read  as  follows: 

Rules.  Instructions    and    Explanations. 

Section  C-1.— Private  cars  on  pri-  Segtion  C-1.— Private  cars  while 
vate  tracks  when  the  ownership  of  the  held  under  constructive  placement  for 
car  and  track  in  the  same.  delivery  upon  the  tracks  of  their  owners 

are  subject  to  demurrage  charges  after 
expiration  of  forty-eight  hours'  free 
time.     (See  Rules  5  and  6.) 

DEFINITICN':^. 

Private  car.— A  car  having  other  than  railroad 
ownership.  A  lease  of  a  car  is  equivalent  to  owner- 
ship. I'rivate  cars  must  have  the  full  name  of 
owner  painted  or  stenciled  thereon  or  must  be 
boarded  with  full  name  of  owner  or  lessee. 

Private  track.— A  track  outside  of  carrier's  right 
of  way,  yard,  and  terminals,  and  of  which  the  car- 
rier does  not  own  either  the  rails,  ties,  roadbed,  or 
right  of  way;  or  a  track  or  portion  of  a  track  which 
is  devoted  to  the  purposes  of  its  user  either  by  lease 
or  written  agreement.  » 


165 


Section  C-2. — Empty  private  cars 
stored  on  carrier's  or  private  tracks, 
provided  such  cars  have  not  been  placed 
or  tendered  for  loading  on  the  orders  of 
a  shipper. 

Note. — Except  as  otherwise  provided  in  para- 
graph 1:  (a)  Pnvate  cars  while  in  railroad  service, 
whether  on  carrier's  or  private  tracks,  are  subject 
to  these  demurrage  rules  to  the  same  extent  as  ears 
of  railroad  ownersliip;  (6)  empty  private  cars  are  in 
railroad  service  from  the  time  they  are  placed  by 
the  carrier  for  loading  or  tendered  for  loading  on  the 
orders  of  a  shipper.  Private  ears  under  lading  are 
in  railroad  service  until  the  lading  is  removed  and 
cars  are  regularly  released. 


Section  C-2. — Empty  private  cars 
stored  on  tracks  not  owned  by  the 
owners  of  such  cars,  and  switched  by 
carriers,  taken  for  loading  without  or- 
der or  requisition  from  shipper,  and 
without  formal  assignment  by  carrier's 
agent,  shall  be  recorded  as  placed  for 
loading  when  actual  loading  is  begun. 

Private  cars  which  have  been  loaded 
on  the  tracks  of  their  owners,  received 
from  such  tracks  and  held  by  this  rail- 
road for  forwarding  directions,  are  sub- 
ject to  demurrage  charges  from  the 
first  7  a.  m.  after  they  are  received 
until  proper  forwarding  directions  are 
furnished  with  no  free  time  allowance 
and  without  notice. 

Rule  5. — Section  A  together  with  instructions  and  explanations 
published  in  connection  therewith  are  amended  to  read  as  follows: 

Rules.  Instructions  and  Explanations. 

Rule  o.— Placing  cars/or  unloading. 

Section  A. — When  delivery  of  a  car 
consigned  or  ordered  to  an  industrial 
interchange  track  or  to  other  than  a 
public  delivery  track  can  not  be  made 
on  account  of  the  inability  of  the  con- 
signee to  receive  it,  or  because  of  any 
other  condition  attributable  to  the  con- 
signee, such  car  will  be  held  at  destina- 
tion or,  if  it  can  not  be  reasonably  ac- 
commodated there,  at  the  nearest  avail- 
able hold  point,  and  written  notice  that 
the  car  is  held  and  that  this  railroad  is 
unable  to  deliver  will  be  sent  or  given 
to  the  consignee.  This  will  be  con- 
sidered constructive  placement. 

Under  this  rule  any  railroad  delay  in  making 
delivery  shall  not  be  computed  against  the  con- 
signee. 

Rule   9  together  with  instructions,  explanations,   and  the  notes 
published  in  connection  therewith  are  amended  to  read  as  follows: 

Application  for  agi'eement  proi-ided 
for  in  Rule  9  ■vvill  be  forwarded  to  the 
,1  and  when  executed  instruc- 
tions will  be  furnished  the  agent  as  to 
the  method  of  reporting. 

iNoTE. — "Demurrage  manager"  or  oflicial  in 
charge  of  demurrage  under  the  organization  in 
effect  on  each  road. 


Section  A. — This  will  apply  to  such 
cars  as  consignees  located  on  switching 
line  are  unable  to  receive  and  which,  for 
that  reason,  the  switching  line  is  un- 
able to  receive  from  carrier  line.  The 
carrier  line  will  ad\ise  the  switching 
line  of  point  of  shipment,  car  initials 
and  number,  contents  and  consignee, 
and  if  transferred  in  transit  the  in- 
itials and  number  of  the  original  car; 
the  switching  line  vnll  notify  consignee 
and  put  such  cars  under  constructive 
placement. 


When  a  consignee  enters  into  the  fol- 
lowing agreement,  the  charge  for  deten- 
tion to  cars,  on  all  cars  (except  cars 
subject  to  Ride  1,  section  C,  paragraph 
1)  held  for  unloading  by  such  consignee, 
shall  be  computed  on  the  basis  of  the 
average  time  of  detention  to  all  such 
cars  unloaded  and  released  during  each 


166 


calendar  month;  such  average  deten- 
tion and  charge  to  be  computed  aa  fol- 
lows: 

Section  A. — One  credit  vsdll  be  allowed 
for  each  car  unloaded  and  released  with- 
in the  first  twenty-four  (24)  hours  of 
free  time.  After  the  expiration  of 
forty-eight  (48)  hours'  free  time,  one 
debit  per  car  per  day,  or  fraction  of  a 
day,  will  be  charged  for  each  of  the 
first  foiu"  days.  In  no  case  shall  more 
than  one  credit  be  allowed  oH  any  one 
car,  and  in  no  case  shall  more  than  four 
credits  be  applied  in  cancellation  of 
debits  accruing  on  any  gne  car.  When 
a  car  has  accrued  four  debits  a  charge 
of  $6  per  car  per  day,  or  fraction  of  a 
day,  will  be  made  for  each  of  the  first 
three  days  thereafter,  and  for  each  suc- 
ceeding day,  or  fraction  of  a  day,  the 
charge  will  be  $10.  After  a  car  has 
accrued  four  debits,  the  charges  named 
herein  will  apply  on  all  subsequent 
Sundays  and  legal  holidays. 

Section  B. — At  the  end  of  the  cal- 
endar month,  the  total  number  of  credits 
will  be  deducted  from  the  total  number 
of  debits  and  $3  per  debit  will  be  charged 
for  the  remainder.  If  the  credits  equal 
or  exceed  the  debits,  no  charge  will  be 
made  for  the  detention  of  the  cars  and 
no  payment  will  be  made  to  consignee  on 
account  of  such  excess  of  credits;  nor 
shall  the  credits  in  excess  of  the  debits 
of  any  one  month  be  considered  in  com- 
puting the  average  detention  for  an- 
other month. 

Section  C. — A  consignee  who  enters 
into  this  average  agi'eement  shall  not 
be  entitled  to  cancellation  or  refund  of 
demurrage  charges  under  section  A, 
paragraphs  1  and  3,  or  section  B  of 
Rule  8. 

Section  D. — A  consignee  who  enters 
into  this  average  agreement  may  be  re- 
quired to  give  sufficient  security  to  the 
carrier  for  the  payment  of  balances  against 
him  at  the  end  of  each  month. 

agreement. 

Rail Compani/: 

Being  fully  acquainted  with  the 
terms,  conditions,  and  effect  of  the 
average  basis  for  settling  for  detention 


167 


to  cars  as  set  forth  in ,  being  the 

car  demuirage  rules  governing  at  all 
stations    and    sidings    on    the    lines    of 

said   rail    company,    except   as 

ehown  in  said  tariff,  and  being  de- 
sii-ous  of  availing  (myself  or  ourselves) 
of  this  alternate  method  of  settlement 
(I    or    we)    do    expressly    agree   to    and 

-%rith  the Rail  company 

that  with  respect  to  all  cars  which  may, 
during  the  continuance  of  this  agree- 
ment, be  handled  for  (my  or  om-)  ac- 
count at  • (Station)   (I   or   we) 

will  fully  observe  and  comply  with  all 
the  terms  and  conditions  of  said  rules 
as  they  are  now  published  or  may  here- 
after be  lawfully  modified  by  duly  pub- 
lished tariffs,  and  will  make  prompt 
payment  of  all  demurrage  chaises  ac- 
cruing thereunder  in  accordance  with 
the  average  basis  as  therein  established 
or  as  hereafter  lawfully  modified  by 
duly  published  tariffs. 

This   agreement   to   be   effective   on 

and  after   tlie day  of , 

19—,  and  to  continue  until  terminated 
by  written  notice  from  either  party  to 
the  other,  which  notice  shall  become 
effective  on  the  first  day  of  the  month 
succeeding  that  in  which  it  is  given. 


Approved  and  accepted , 

19 ,  by  and  on  behalf  of  the  above- 
named   rail company  by 


General  Order  Xo.  8. 

Washington,  Fcbruaiy  21,  1918. 

To  correct  wrong  impressions  that  may  exist  regarding  the  em- 
ployment and  conditions  of  labor  in  railway  service,  it  is, 

Until  further  order  directed  that: 

1.  All  acts  of  Congress  to  promote  the  safety  of  employees  and 
travelers  tipon  the  railroads,  including  acts  requiring  investigation 
of  accidents  on  railroads,  and  orders  of  the  Interstate  Commerce 
Commission  made  in  accordance  therewith,  must  be  fully  complied 
with.  These  acts  and  orders  refer  to  hours  of  service,  safety  appli- 
ances, and  inspection. 

Now  that  the  railroads  are  in  the  possession  and  control  of  the 
Government,  it  would  be  futile  to  impose  fines  for  violations  of  said 


168 

laws  and  orders  upon  the  Government,  therefore  it  will  become  the 
duty  of  the  Director  General  in  the  enforcement  of  said  laws  and 
orders  to  impose  punishments  for  willful  and  inexcusable  violations 
thereof  upon  the  person  or  persons  responsible  therefor,  such  punish- 
ment to  be  determined  by  the  facts  in  each  case. 

2.  When  the  exigencies  of  the  service  require  it,  or  when  a  suffi- 
cient number  of  employees  in  any  department  are  not  available  to 
render  the  public  prompt  transportation  service,  employees  will  be 
required  to  work  a  reasonable  amount  of  overtime.  So  far  as  effi- 
cient and  economic  operation  v.ill  permit,  excessive  hours  of  employ- 
liient  w^ill  not  be  required  of  employees. 

3.  The  broad  question  of  wages  and  hours  will  be  passed  upon  and 
reported  to  the  Director  General  a-^  promptly  as  possible  b}'  the 
present  Railroad  Wage  Commission.  Pending  a  disposition  of  these 
matters  by  the  Director  General,  all  requests  of  employees  involving 
revisions  of  schedules  or  general  changes  in  conditions  affecting 
wages  and  hours,  will  be  licld  in  abeyance  by  both  the  managers  and 
emi^loyee.s.  Wages  when  determined  upon,  will  be  made  retroactive 
to  January  1,  1918,  and  adjusted  accordingly.  Matters  of  contro- 
versy arising  under  interpretations  of  existing  wage  agreements  and 
other  matters  not  relating  to  wages  and  hours  will  take  their  usual 
course,  and  in  the  event  of  inability  to  reach  a  settlement  wnll  be 
lef erred  to  the  Director  General. 

4.  In    Order   Xo,    1.    issued    December    29.    1917.    the    following 

appeared : 

All  officers,  agents,  ami  employees  of  such  transportation  system  may  con- 
tinue in  the  performance  of  their  present  regular  duties,  reporting  to  the  same 
officers  as  heretofore  and  on  the  same  terms  of  employment. 

The  impression  seems  to  exist  on  some  railroads  that  the  said 
order  was  intended  to  prevent  any  change  in  the  terms  of  employ- 
ment during  governmental  operation.  The  purpose  of  the  order  was 
to  confirm  all  terms  of  employment  existing  upon  that  date,  but  sub- 
ject to  subsequent  modifications  deemed  advisable  for  the  require- 
ments of  the  service.  Any  contrary  impression  or  construction  is 
erroneous.  Officers  and  employees  will  be  governed  by  tlie  construc- 
tion here  given. 

5.  No  discrimination  will  be  made  in  the  employment,  retention, 
or  conditions  of  employment  of  employees  befause  of  membership 
or  nonmembership  in  labor  organizations. 

The  Government  now^  being  in  control  of  the  railroads,  the  officers 
and  employees  of  the  various  companies  no  longer  serve  a  private 
interest.  All  now  serve  the  Government  and  the  public  interest 
only.  I  want  the  officers  and  employees  to  get  the  spirit  of  this  new 
era.  Supreme  devotion  to  country,  an  invincible  determination  to 
perform  the  imperative  duties  of  the  hour  while  the  life  of  the 


169 

Nation  is  ijiiperiltHl  by  wav.  must  obliterate  old  enmities  and  make 
friends  and  comrades  of  us  all.  There  must  be  cooperation,  not  an- 
tagonism; confidence,  not  suspicion;  nnitual  helpfulness,  not  grudg- 
ing performance;  just  consideration,  not  arbitrary  disregard  of 
each  other's  rights  and  feelings;  a  fine  discipline  based  on  mutual 
respect  and  sympathy ;  and  an  earnest  desire  to  serve  the  great  pub- 
lic faithfully  and  efficiently.  This  is  the  new  spirit  and  purpose  that 
umst  pervade  every  part  and  branch  of  the  national  railroad 
service. 

America's  safety,  America's  ideals,  America's  rights  are  at  stake. 
Democracy  and  liberty  throughout  the  world  depend  upon  America's 
valor,  America's  strength,  America's  fighting  power.  We  can  win 
and  save  the  world  from  despotism  and  bondage  only  if  we  pull 
together.  We  can  not  pull  apart  without  ditching  the  train.  Let 
us  go  forward  with  unshakable  purpose  to  do  our  part  superlatively. 
Then  we  shall  save  America,  restore  peace  to  a  distracted  worlds  and 
gain  for  ourselves  the  coveted  distinction  and  just  reward  of  pa- 
triotic service  nobly  done. 

W.  G.  McAdoo, 
D'necfor  General  of  Railroads. 


General  Order  Xo.  0. 

"^^^ASHIXGTOx,  D,  C,  Fehruary  £3, 1918. 
With  reference  to  officers  whose  salaries  are  chargeable  to  operating 
expenses,  it  is  hereby  ordered: 

1.  A  carrier  shall  not  create  an  additional  office  or  fill  a  vacancy 
in  an  existing  office,  except  when  such  step  is  necessai*y  to  the  opera- 
tion of  the  railroad  under  the  existing  conditions  of  Government 
possession  and  control.  In  cases  of  doubt,  application,  with  state- 
ment of  salary  proposed,  may  be  made  through  the  Eegional  Director 
for  the  Director  General's  approval. 

2.  A  carrier  shall  not  fill  a  vacancy  in  office  of  or  above  the  grade 
of  general  manager  or  create  such  an  office  without  the  approval  of 
the  Director  General.  Application  with  statement  of  salary  pro- 
posed may  be  made  through  the  regional  director  for  the  Director 
General's  approval. 

3.  With  reference  to  general  officers  and  division  officers  (accord- 
ing to  I.  C.  C.  classification  of  steam  railway  employees)  receiving 
$3,000  or  more  and  less  than  $10,000  per  year,  each  carrier  shall  make 
to  the  regional  director  a  monthly  report  showing  increase  in  sala- 
ries, appointments  (showing  salaries  therefor)  to  fill  vacancies,  and 
the  creation  of  new  positions  (showing  salaries  therefor),  begimiing 
with  the  month  of  Januarv.  1918. 


170 

4.  "With  reference  to  such  general  officers  and  division  officers  re- 
ceiving $10,000  or  more  per  year,  such  monthly  report  shall  be  made 
in  duplicate,  and  one  duplicate  shall  be  sent  to  the  Regional  Director 
and  the  other  duplicate  to  the  Director  General. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Gexeral  Okder  Xo.  10. 

Washingtox,  D.  C,  March  H,  191S. 
Each  and  every  carrier  subject  to  Federal  control  shall,  prior  to 
May  1,  1918,  commence  taking  an  inventory  of  its  materials  and  sup- 
plies by  actual  count,  measurement,  weight,  etc.,  and  shall  immedi- 
ately upon  completion  thereof  adjust  such  inventory,  by  additions 
and  deductions,  to  December  31,  1017;  provided,  however,  that  any 
such  carrier  that  has  taken  an  inventory  of  its  materials  and  sup- 
plies in  the  form  indicated  within  90  clays  prior  to  December  31, 
1917,  or  subsequent  to  the  latter  date,  shall  not  be  required  to  take 
an  additional  inventory,  but  shall  adjust  the  inventory  previously 
taken,  by  additions  and  deductions,  to  December  31,  1917. 

The  said  inventory  shall  be  preserved  in  the  files  of  the  carrier. 

W.  G.  McAdoo, 
Director  General  of  Railroacfs. 


General   Order   Xo.   11. 

FOR    the   ADOPTIOX    OF    VXIVERSAL    IXTERLIXE    WAYBILLIXG    AND    STAND- 
ARD   FORMS. 

Washington,  D.  C,  3Iarch  10,  WIS. 
To  chief  executive  officers  of  carriers  subject  to  Federal  control: 

1.  Effective  May  1,  1918,  all  freight  forwarded  from  one  point  in 
the  United  States  to  another  point  in  the  United  States  (including 
freight  passing  through  Canada  or  Mexico  en  route),  and  moving 
over  two  or  more  railroads  or  boat  lines  under  Federal  control,  must 
be  waybilled  through  from  point  of  origin  to  destination,  regardless 
of  the  absence  of  joint  rates.  When  destination  station  is  on  a  rail- 
road not  under  Federal  control,  freight  should  be  waybilled  to  the 
junction  point  with  such  road;  provided,  however,  that  nothing  in 
this  paragraph  shall  prohibit  through  waybilling  arrangements  be- 
tween carriers  now  under  Federal  control  and  others  not  so  con- 
trolled. 

2.  A  separate  waybill  must  be  made  for  each  less  carload  consign- 
ment and  for  each  carload ;  provided,  however,  that  a  single  waybill 


171 

may  be  made  to  cover  a  special  train  moving  at  a  lump-sum  charge 
for  the  train  or  for  shipments  which,  on  account  of  tlieir  lengtii,  re- 
quire more  than  one  car. 

3.  Waybills  for  carload  freight  must  move  with  the  cars.  Way- 
bills for  less  carload  freight  must  be  moved  with  the  cars  when  prac- 
ticable; otherwise  so  as  to  reach  the  transfer  point  or  destination 
station  with  or  in  advance  of  the  cars.  In  the  event  that  waybills 
for  solid  cars  of  less  carload  freight  are  mailed  direct  to  destination 
or  transfer  stations,  a  separate  waybill  must  be  made  on  standard 
form,  showing  destination  of  car,  and  bearing  notation : 

INIerchandise  car,  waybills 
mailed  to 

Junction  agents  must  show  stamps  on  this  waybill  in  the  same  man- 
ner as  provided  in  paragraph  4. 

4.  Complete  routing  must  be  specified  on  each  waybill  as  and  when 
made,  in  the  space  provided  therefor.  Each  forwarding  junction 
agent,  at  points  of  interchange,  must  stamp  each  waybill  for  freights 
interchanged  in  the  space  at  the  bottom  of  the  waybill  and  in  the 
order  there  shown.  Such  stamps  must  show  the  station  at  which  the 
interchange  is  made  and  the  name  of  the  railroad  forwarding  the 
freight  from  such  junction,  for  example: 

Jamestown. 

North  &  South  R.  R. 

(Stamp  must  be  li  inches  by  i  inch.) 

5.  When  freight  moves  on  a  joint  through  rate,  each  waybill  must 
show  freight  charges  from  point  of  origin  to  destination. 

G.  Freight  moving  on  a  combination  of  rates : 

(a)  If  the  billing  agent  is  in  possession  of  all  necessary  tariffs, 
the  rate  and  freight  charges  to  and  beyond  the  rate-breaking  points 
must  be  shown  successively,  one  beneath  the  other,  and  the  total  of 
all  freight  charges  indicated.  For  example,  the  rate  and  freight 
charges  on  a  shipment  from  New  York,  X.  Y.,  to  Denver,  Colo.,  will 
appear  as  follows: 


Weight.       Rate. 


To  Mis-iissippi  River 200  I      '}•  2^ 

Mississippi  River  to  Denver '        ^-"^ 


Freight. 


$2.11 
3.24 


Total. 


S.3o 


(b)   If  the  billing  agent  is  not  in  possession  of  the  rates  beyond  the 
rate-breaking  point,  the  waybill  must  be  headed  to  destination,  and 


172 

the  rate  and  freight  charges  shown  to  the  rate-breaking  jwint,  "v\'ith 
the  movement  beyond  indicated.     For  example : 


To  Mississippi  River 

Mississippi  River  to  Denver . 


Weight. 


200 


Kate. 
Sl.Ooo 


Freight. 


In  this  case  the  billing  agent  will  stamp  or  indorse  Ava^'biil  as 
f  olloMs : 

Shipment   not   rated  through. 
Junction  or  destination  agent 
will  insert  charges  omitted. 
(Stamp,  if  used,  imist  be  11  inches  hy  I  inch.) 

(c)  The  junction  receiving  agent  nnist  revise  rates  on  inbound 
billing  to  the  rate-breaking  point,  insert  the  divisions  of  revenue 
accruing  to  the  roads  up  to  the  rate-breaking  point,  and  certify  to 
their  correctness,  by  use  of  an  appropriate  rubber  stamp  reading 
as  follows: 

llevised  at 

North  &  South  R.  R. 
I  Stamp  muj^t  he  IJ  inches  by  g  inch,  i 

(fl)  Agents  forwarding  shipments  from  rate-breaking  points  must 
insert  rates  and  freight  charges  applicable  to  destination  or  to  the 
next  rate-breaking  point.  If  in  any  case  this  plan  is  not  practicable, 
arrangements  may  be  jnade  to  have  such  rates  and  charges  inserted 
by  destination  agents. 

7.  When  miscellaneous  charges  of  any  character  accrue  in  transit, 
and  they  are  to  be  collected  from  consignee,  they  should  be  shown  as 
separate  items  in  the  freight  charges  column  on  Avaybills.  with  nota- 
tion oppo.site  each  item  indicating  the  nature  of  the  charge,  the 
point  at  which  it  accrued,  and  the  road  to  which  due.  In  final 
settleujcnt,  such  charges  will  be  allowed  as  an  arbitrary  to  carrier 
to  which  they  are  due. 

8.  A  standard  form  of  waybill  (sample  attached)  is  hereb}'  pre- 
scribed and  must  be  used  on  and  after  May  1.  1918. 

(a)  This  waybill  form  must  be  printed  on  paper  apiuoximating 
in  weight  "  80  pounds  No.  1  Manila,  24  by  36." 

(h)  Only  the  original  and  one  copy  of  waybill  shall  be  made.  The 
original  must  accompany  the  shipment  as  herein  provided  and  the 
copy  must  be  retained  by  the  company  making  the  waybill. 

(r-)  This  waybill  shall  also  be  used  for  astray  freight. 

(d)  This  waybill  is  designed  to  be  folded  vertically,  and  left  side 
containing  all  information  for  the  physical  movement  of  the  car. 


173 

(e)  For  special  classes  of  traffic,  requiring  a  larger  waybill,  the 
form  may  be  8^  by  22  inches. 

(/)  Supplies  of  waybill  forms  now  on  hand  may  be  used  for  local 
business. 

9.  The  plan  of  audit-office  settlement  recommended  by  the  Asso- 
ciation of  American  Railway  Accounting  Officers,  as  outlined  in  that 
association's  1917  synopsis — paragraphs  16,  17,  18,  28,  29,  and  30 
shall  govern.  This  plan  requires  that  destination  carriers  shall  make 
settlement  with  each  of  the  carriers  in  interest  for  its  proportion  of 
revenue. 

10.  The  total  freight  charges,  as  reported  by  destination  carrier, 
and  the  divisions  thereof,  must  be  accepted  by  all  interested  carriers 
as  final.  No  recheck  of  such  settlement  will  be  made,  except  as  to 
advances  and  prepaid,  and  to  establish  lists  of  unreported  Avaybills. 

11.  The  following  forms  must  be  used  in  preparing  audit-office 
settlement  accounts: 

(a)  Interline  abstract.  Form  (A.  A.  R.  A.  O.)  104. 

(b)  Division  sheet.     Form  (A.  A.  R.  A.  O.)  105. 

(e)   Summary  of  interline  accounts.    Form  (A.  A.  R.  A.  O.)  110. 

These  forms  are  recommended  by  the  Association  of  American 
Railway  Accounting  Officers,  and  samples  are  shown  in  that  associa- 
tion's 1917  synopsis. 

12.  Unless  and  until  otherwise  ordered  revenues  shall  be  appor- 
tioned among  carriers  in  accordance  with  the  route  via  which  the 
shipment  moved,  in  the  following  manner : 

(a)  Where  joint  through  rates  are  in  effect,  established  divisions, 
or  any  simplifications  thereof  which  may  have  been  perfected,  shall 
be  used. 

(h)  Combination  rates  shall  be  divided  as  made.  If  one  or  more 
of  the  factors  in  the  combination  are  joint  through  rates,  such  factors 
shall  be  divided  as  provided  in  subparagraph  {a)  preceding. 

(c)  When  neither  of  the  above  division  bases  can  be  used,  revenues 
shall  be  divided  on  20  mile  block  mileage  basis,  each  carrier  to  be 
allowed  at  least  20  miles,  and  originating  and  terminal  carriers  an 
additional  20  miles  each  as  constructive  mileage. 

13.  Simplified  bases  for  apportioning  interroad  freight  revenues 
are  now  being  considered ;  upon  their  determination  carriers  will  be 
advised  thereof  in  a  subsequent  order. 

14.  Immediate  steps  shall  be  taken  by  each  carrier  to  make  the  fore- 
going regulations  effective  as  of  May  1,  1918,  and  to  procure  supplies 
of  the  prescribed  waybill  and  accounting  forms,  and  to  issue  the 
necessary  instructions  to  all  concerned. 

W.  G.  McAdoo, 
Director  General. 


174 


NORTH  &  SOUTH  RAILROAD  CO. 


Freight  Way-bill. 


Sto;i  '.his  car  for 

At 


Gross  weight  of 
car  and  contents 
for  engine  rating. 


YARD    STAMP.S    MUST    NOT    BE    SHOWK   ON   FACE    OF 
THIS  WAY-BILL. 


Transferred 


To- 


Car  No.- 


At- 


Car  movement  record. 


Car  i-iitials 


Car  number 


WaybUl 
Date No 


Route  (show  each  jiLnction  and  carrier  in  route  order) 


From 


(station) 


(State) 


To 


(station) 


(State) 


Shipper 


Con^i'jrnee  and  address 


Ivcngth  of  car 
Ft.  In. 


■^  Reference  num- 
bers. 


Instructions  regarding  icing,  ventilation,  milling, 
v/oighing,  etc.  If  iced,  specify  to  whom  icing 
should  be  charged. 


Indicate  by  sym- 
bol in  column 
provided  how 
weights  were  ob- 
tained. 

R— Railroad  scale. 

A— Weighing  Bu- 
reau or  agree- 
ment. 

T— Tarifl,  classifi- 
cation or  mini- 
mum. 

S— S  h  i  p  p  e  r '  s 
agreement  o  r 
tested  weight. 

E— Estimated 
(weigh  and 
correct). 


Marked   ca- 
pacity of  car 


Stenciled 
weight  of  car 


Weighed 


At 

Gross 

Tare 

Allowance . 
Net 


Ladins 


•J^Tn.sert  here  license  num- 
bers, lull  of  lading  numbers, 
or  such  other  reference  num- 
bers as  are  essential. 


Weight. 


How 
ob- 
tained. 


Rate  and 
tarifl  No. 


Freight. 


Advances. 


Prepaid. 


175 


/UNCTIOX  FORWARDING  AGEXTS  WILL  SHOW  JUNCTIOX  STAMPS  IN"  THE  SPACE  AND  IX  THE  ORDER  PROVIDED 

BELOW. 


NORTH  &  SOUTH  RAILROAD  CO. 


Freight  Way-Bili.. 


Stop  this  car 
At 


Gross  weight  of 
car  and  contents 
for  engine  rating. 

Tons. 


YARD   STAMPS  MUST  NOT   BE   .SHOWX   OX  FACE   OF 
THIS  WAY-BILL. 


Transferred 


To- 
At- 


Car  No. 


Car  movement  record 


Car  initials 


Car  number 


Route  (show  each  junction  and  carrier  in  route  order) 


Date. 


AVaybill 
.    No 


From 


(station) 


(State) 


To 


(station) 


(State) 


Shipper 


Consignee  and  address 


Length  of  car 
Ft.         In. 


A  Reference  num- 
bers. 


Instructions  regarding  icing,  ventilation,  milling, 
weighing,  etc.  If  iced,  specify  to  whom  icing 
should  be  charged. 


Indicate  by  sym- 
bO'l  in  column 
provided  how 
weights  were  ob- 
tained. 

R — Railroad  scale. 

A — "Weighing  I5u- 
reau  or  agree- 
ment. 

T— TariS,  classifi- 
cation or  mini- 
mum. 

S— S  h  i  p  p  e  r  '  s 
agreement  or 
tested  weight . 

E— Estimated 
(weigh  and  cor- 
rect). 


Marked  ca- 
pacity of  car 


Stenciled 
weight  of  car 


Weighed 


Gross. 


Allowance . 


Net. 


Lading. 


•A-Insert  here  license  num- 
bers, bill  of  lading  numbers, 
or  such  otherreference  num- 
bers as  are  essential. 


Weight. 


How 
ob- 
tained. 


Rate  and 
tariff  No. 


Freight. 


Advances.  I    Prepaid. 


JUNCTION  FORWAEDING  AGENTS  WILL  SHOW  JUNCTION  STAMPS  IN  THE  SPACE  AND  IN  THE  ORDER  PRO- 
VIDED BELOW. 


176 

General  Order  Xo.  12. 

AVashingtox,  March  ^1,  1918. 

It  is  ordered  that  the  following  rules  be  observed  with  respect  to 
all  railroad  work  involving  charges  to  capital  account,  viz: 

First.  In  determining  what  additions  and  betterments,  including 
equipment,  and  what  road  extensions  should  be  treated  as  necessary, 
and  what  work  already  entered  upon  should  be  suspended,  please  be 
guided  by  the  following  general  principles: 

(«)  From  the  financial  standpoint  it  is  highly  important  .to  avoid 
the  necessity  for  raising  any  noAv  capital  which  is  not  absoluteh^ 
necessary  for  the  protection  and  development  of  the  i-equired  trans- 
portation facilities  to  meet  the  present  and  prospective  needs  of  the 
country's  business  imder  war  <  onditions.  From  the  standpoint  of 
the  available  supply  of  labor  and  material,  it  is  likewise  highl}'  im- 
portant that  this  supply  shall  not  be  absorbed  except  for  the  neces- 
sary purposes  mentioned  in  the  preceding  sentence. 

(&)  Please  also  bear  in  mind  that  it  may  frequently  happen  that 
projects  wdiich  might  be  regarded  as  highly  meritorious  and  neces- 
sary when  viewed  from  the  separate  standpoint  of  a  particular 
company,  may  not  be  equally  meritorious  or  necessary  under  existing 
conditions,  when  the  Government  has  possession  and  control  of  the 
lailroads  generally,  and  therefore  when  the  facilities  heretofore  sub- 
ject to  the  exclusive  control  of  the  separate  companies  are  now  avail- 
able for  common  use,  Avhenever  such  common  use  will  promote  the 
movement  of  traffic. 

Second.  The  construction  of  new  lines  or  branches  or  extensions 
of  existing  lines  shall  not  be  entered  upon  or  contracted  for  without 
the  Director  General's  approval. 

Third.  No  new  locomotives  or  cars  shall  be  ordered  or  constructed 
without  the  Director  General's  approval. 

Fourth.  Work  contracted  for  or  actually  commenced  prior  to 
January  1.  1918,  and  unfinished,  may  be  continued  until  further 
order,  except  in  so  far  as  in  the  judgment  of  the  carrier  concerned 
it  may  be  possible  to  discontinue  or  curtail  it  without  substantial  loss, 
in  order  to  conform  to  the  general  principles  outlined  in  paragraph 
"  First "  hereof. 

Fifth.  Other  work  which  does  not  involve  charges  to  capital  ac- 
count in  excess  of  $25,000  may  be  contracted  for  and  commenced 
without  approval  of  the  Director  General,  provided  that — 

{a)  It  conforms  to  the  policy  outlined  in  paragraph  "First" 
hereof;  that 

{h)  It  also  falls  clearly  within  the  policy  of  the  particular  carrier 
as  that  policy  has  been  applied  in  practice  during  the  two  calendar 
vears  1916  and  1917:  and  that 


177 

(c)  A  report  giving  a  brief  description  of  each  project  involving 
not  less  than  $5,000  nor  more  than  $:25,000  chargeable  to  capital  ac- 
count and  showing  also  the  amount  chargeable  to  operating  expenses, 
shall  be  made  in  duplicate  to  the  Director  of  the  Division  of  Capital 
Exi>enditures  at  AVai^hington  and  regional  director  for  the  di?-trict 
within  10  days  after  the  work  shall  be  contracted  for  or  commenced. 

Sixth.  Xo  work  involving  a  charge  to  capital  accomit  in  excess  of 
$25,000  shall  be  contracted  for  or  connnenced  subsequent  to  January 
1,  1918.  unless— 

(a)  It  conforms  to  the  policy  outlined  in  ])aragra]ih  "First" 
hereof;  and  unless 

(h)   It  be  authorized  by  the  Director  General. 

Seventh.  The  Director  of  the  Division  of  Capital  Expenditures 
is  authorized  to  prescribe  such  forms,  reciiiire  snch  reports,  and  issue 
such  regulations  and  instructions  as  may  be  necessary  to  cany  out 
this  order. 

^X.  G.  McAdoo, 
D'trcctor  General  of  Ba'ilrocuJs, 


SUPPLE^IEXT   Xo.    1   TO    GeXERAL   OrDER   Xo.    I'l. 

Washington,  Xovembcr  12^  lOl^. 
The  "  standard  clauses "'  for  the  contracts  between  the  Government 
and  the  Railroad  Companies  provide  that  "prompt  notice"  shall  be 
given  the  Company  of  the  making  or  ordering  of  additions,  better- 
ments, road  extensions,  equipment,  etc.  costing  more  than  $1,000, 
with  an  estimate  of  the  cost  thereof,  and  that  "  such  notice  shall  be 
given  before  the  beginning  of  the  work  or  the  acquisition  of  the 
property  whenever  in  the  judgment  of  the  Director  General  it  is 
practicable  to  do  so.''  In  order  the  better  to  comply  with  said 
agreement,  paragraph  "  Fifth "  of  General  Order  Xo.  12,  dated 
March  21,  1918.  (which  authorized  in  certain  circumstances  work 
involving  charges  to  capital  account  not  in  excess  of  $25,000  to  be 
contracted  for  and  commenced  in  advance  of  approval  by  the 
Director  General)  is  hereby  amended,  effective  January  1,  1919,  so 
as  hereafter  to  read  as  follows : 

Fifth:  A  requisition  for  authority  on  the  form  prescribed  by  D.  C.  E. 
Circular  No.  1  and  Supplement  1  and  by  otlier  Supplements  issued  or  thar  may 
be  issued  thereto  shall  be  prepared  and  a  copy  thereof  sliall  be  forwarded  by 
mail  to  the  President  of  the  Company  to  be  charped  therewith,  as  provided  in 
said  Circular,  as  notice  of  the  maicintr  or  ordering  of  such  addition,  betterment, 
road  extension,  equipment,  etc.  required  l)y  said  agreement;  and  such  copy 
should  be  so  forwarded  before  the  beginning  of  tlie  work  or  the  acquisition 
of  the  property  except  in  cases  of  emergency  or  other  cases  where  the  delay 
incident  to  the  preparation  and  forwarding  of  such  requisitions  will  be  detri- 
mental to  the  Government,  the  service,  or  the  Company ;  and  in  all  such  excep- 
105889°— 19 12 


178 

tional  cases  the  requisitions  shall  be  furwardeil  as  soon  after  the  beginning  of 
the  work  as  reasonably  practicable.  No  vork  involving  a  charge  to  capital 
account  of  $1,OC)0  or  more  shall  be  contracted  for  or  commenced  unless  it  be 
authorized  by  the  Regional  Director  except  in  cases  of  emergency  ;  and  no  work 
involving  a  charge  to  capital  account  in  excess  of  $10,000  shall  be  con+ractt^il 
for  or  commenced  unless  it  be  authorized  by  the  Director  of  the  Division  of 
Capital  Expenditures  except  in  cases  of  emergency  and  in  other  cases  where 
the  delay  incident  to  awaiting  such  authority  on  the  usual  form  would  be 
detrimental,  in  which  latter  cases  preliminary  authority  should  be  obtained 
bv  telegraph  whenever  practicable. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  Xo.  13. 

Washington,  March  22.,  191S. 

Whereas  practically  all  of  the  railroads  now  under  control  of  the 
Director  General  have  in  existence  at  this  time  agreements  with  the 
Brotherhood  of  Locomotive  Engineers,  Order  of  Eailway  Conduc- 
tors, Brotherhood  of  Eailroad  Trainmen,  and  Brotherhood  of  Loco- 
motive Firemen  and  Enginemen  which  provide  for  basis  of  compen- 
sation and  regulations  of  employment ;  and 

Whereas  in  existing  circumstances  it  is  the  patriotic  duty  of  both 
officers  and  employees  of  the  railroads  under  Federal  control,  during 
the  present  war,  promptly  and  equitably  to  adjust  any  controversies 
which  may  arise,  thereby  eliminating  misunderstandings  which  tend 
to  lessen  the  efficiency  of  the  service : 

It  is  hereby  ordered^  That  the  basis  arrived  at  in  the  annexed 
understanding  between  Messrs.  A.  H.  Smith,  C.  H.  Markham,  and 
R.  H.  Aishton,  regional  directors,  representing  the  railroads  in  the 
eastern,  southern,  and  western  territories,  with  the  chief  executive 
officers  of  the  Brotherhood  of  Locomotive  Engineers,  Order  of  Rail- 
way Conductors,  Brotherhood  of  Railroad  Trainmen,  and  Brother- 
hood of  Locomotive  Firemen  and  Enginemen  be.  and  the  same  is 
hereby,  adopted  and  put  into  effect  as  of  March  2-2.  1018. 

W.  G.  McAdoo. 
Director  General  of  Railroach. 


MEMORANDUM  OF  AX  UNDERSTANDING  BETWEEN  MESSRS.  A,  II.  SMITH, 
C.  H.  MARKHAM,  AND  R.  II.  AISHTON,  REGIONAL,  DIRECTORS,  REPRESENT- 
ING THE  RAILiROADS  IN  THEIR  RESPECTIVE  REGIONS,  AND  MR.  W.  S. 
STONE,  GRAND  CHIEF  ENGINEER,  BROTHERHOOD  OF  LOCOMOTIVE  ENGI- 
NEERS; MR.  A.  B.  GARRETSON.  PRESIDENT  ORDER  OF  RAILAVAY  CONDUC- 
TORS; MR.  W.  G.  LEE,  PRESIDENT  BROTHERHOOD  OF  RAILROAD  TRAINMEN; 
MR.  TIMOTHY  SHEA,  ACTING  PRESIDENT  BROTHERHOOD  OF  LOCO:\rOTTVE 
FIREMEN   AND  ENGINEMEN. 

It  is  understood.  That  all  controversies  growing  out  of  the  inter- 
pretation or  application  of  the  provisions  of  the  wage  schedule  or 


179 

agreements  which  are  not  promptly  adjusted  by  the  officials  and  the 
oiiiployees  on  any  one  of  the  railroads  operated  by  the  Government 
shall  be  disposed  of  in  the  following  manner : 

1.  There  shall  be  at  once  created  a  commission,  to  be  known  as 
Ivailway  Board  of  Adjustment  No.  1,  to  consist  of  eight  members, 
four  to  be  selected  by  the  said  regional  directors  and  compensated 
by  the  railroads,  and  one  each  by  the  chief  executive  officer  of  each 
of  the  four  organizations  of  employees  hereinbefore  named  and  com- 
pensated by  such  organizations. 

2.  This  Board  of  Adjustment  No.  1  shall  meet  in  the  city  of  Wash- 
ington, within  10  days  after  the  selection  of  its  members,  and  elect  a 
chairman  and  vice  chairman,  who  shall  be  members  of  the  board. 
The  chairman  or  vice  chairman  will  preside  at  meetings  of  the  board, 
and  both  will  be  required  to  vote  upon  the  adoption  of  all  decisions 
of  the  board. 

3.  The  board  shall  meet  regularly,  at  stated  times  each  month,  and 
continue  in  session  until  all  matters  before  it  are  considered. 

4.  Unless  otherwise  mutually  agreed,  all  meetings  of  the  board 
shall  be  held  in  the  city  of  Washington :  Provided^  That  the  board 
shall  have  authority  to  empower  two  or  more  of  its  members  to*  con- 
duct hearings  and  pass  upon  controversies,  when  properl}^  submitted 
at  any  place  designated  by  the  board:  Provided  further^  That  such 
subdivision  of  the  board  Avill  not  be  authorized  to  make  final  deci- 
sion. All  decisions  shall  be  made  and  approved  by  the  entire  board, 
as  herein  provided. 

5.  Should  a  vacancy  occur  in  the  board  for  any  cause,  such  va- 
cancy shall  be  immediately  filled  by  the  same  appointive  authority 
which  made  the  original  selection. 

6.  All  authority  vested  in  the  Commission  of  Eight,  to  adjust  dis- 
putes arising  out  of  the  application  of  the  eight-hour  law,  is  hereby 
transferred  to  the  Railway  Board  of  Adjustment  No.  1,  in  the  same 
manner  as  has  heretofore  been  done  by  the  Commission  of  Eight. 
All  decisions  of  a  general  character  heretofore  made  by  the  Commis- 
sion of  Eight  are  hereby  confirmed,  and  shall  apply  to  all  railroads 
under  governmental  operation,  unless  exempted  in  said  eight-hour 
law.  Decisions  which  have  been  rendered  by  the  Commission  of 
Eight,  and  which  apply  to  individual  railroads,  shall  remain  in  effect 
until  supereeded  by  decisions  of  the  Railway  Board  of  Adjustment 
No.  1  made  in  accordance  with  this  understanding. 

,  7.  The  Railway  Board  of  Adjustment  No.  1  shall  render  decisions 
on  all  matters  in  dispute  as  provided  in  the  preamble  hereof,  and 
when  properly  submitted  to  the  board. 

8.  The  broad  question  of  wages  and  hours  will  be  considered  by  the 
Railroad  Wage  Commission,  but  matters  of  controversies  arising 
from   interpretations   of   wage   agreements,   not    including   matters 


180 

passed  upon  by  the  Railroad  Wage  Commission,  shall  be  decided  by 
the  Eailway  Board  of  Adjustment  Xo.  1,  when  properly  presented 
to  it. 

9.  Wages  and  hours,  Avhen  fixed  by  the  Director  General,  shall  be 
incorporated  ir^to  existing  agreements  on  the  several  railroads,  and 
should  diiferences  arise  between  the  management  and  the  employees 
of  any  of  the  railroads  as  to  such  incorporation,  such  questions  of 
difference  shall  be  decided  by  the  Railway  Board  of  Adjustment 
Xo.  1,  when  properly  presented,  subject  always  to  review  by  the 
Director  General. 

10.  Personal  grievances  or  controversies  arising  under  interpreta- 
tion of  wage  agi'eements,  and  all  other  disputes  arising  between 
officials  of  a  railroad  and  its  employees,  covered  by  this  understand- 
ing, will  be  handled  in  their  usual  manner  by  general  committees  of 
the  employees  up  to  and  including  the  chief  operating  officer  of  the 
railroad  (or  some  one  officially  designated  by  him) ,  when,  if  an  agree- 
ment is  not  reached,  the  chairman  of  the  general  committee  of  em- 
ployees may  refer  the  matter  to  the  chief  executive  officer  of  the 
organization  concerned,  and  if  the  contention  of  the  employees'  com- 
mittee is  approved  by  such  executive  officer,  then  the  chief  operating 
officer  of  the  railroad  and  the  chief  executive  officer  of  the  organiza- 
tion concerned  shall  refer  the  matter,  with  all  supporting  papers,  to 
the  Director  of  the  Division  of  Labor  of  the  United  States  Railroad 
Administration,  who  will  in  turn  present  the  case  to  the  Railway 
Board  of  Adjustment  No.  1,  which  board  shall  promptly  hear  and 
decide  the  case,  giving  due  notice  to  the  chief  operating  officer  of  the 
railroad  interested  and  to  the  chief  executive  officer  of  the  organiza- 
tion concerned  of  the  time  set  for  hearing. 

11.  Xo  matter  will  be  considered  by  the  Railway  Board  of  Adjust- 
ment Xo.  1  unless  officially  refen*ed  to  it  in  the  manner  herein  pre- 
scribed. 

12.  In  hearings  before  the  Railway  Board  of  Adjustment  Xo.  1, 
in  matters  properly  submitted  for  its  consideration,  the  railroad 
shall  be  represented  by  such  person  or  persons  as  may  be  designated 
by  the  chief  operating  officer,  and  the  employees  shall  be  represented 
by  such  person  or  persons  as  may  be  designated  by  the  chief  execu- 
tive officer  of  the  organization  concerned. 

13.  All  clerical  and  office  expenses  will  bo  paid  by  the  United  States 
Railroad  Administration.  The  railroad  directly  concerned  and  the 
organization  involved  in  a  hearing  will,  respectively,  assume  any  ex- 
pense incurred  in  presenting  a  case. 

14.  In  each  case  an  effort  should  be  made  to  present  a  joint  concrete 
statement  of  facts  as  to  any  controversies,  but  the  board  is  fully 
authorized  to  require  information  in  addition  to  the  concrete  state- 
ment of  facts,  and  may  call  upon  the  chief  operating  officer  of  the 


181 

railroad  or  the  chief  executive  officer  of  the  organization  concerned 
for  additional  evidence,  either  oral  or  writt-en. 

15.  All  decisions  of  the  Rnihvay  Board  of  Adjustment  X(\  1  shall 
be  approved  by  a  majority  vote  of  all  members  of  the  board. 

16.  After  a  matter  has  been  considered  by  the  board,  and  in  the 
event  a  majority  vote  can  not  be  obtained,  then  any  four  members  of 
the  board  may  elect  to  refer  the  matter  npon  which  no  decision  has 
been  reached  to  the  Director  General  of  Railroads  for  a  final  decision. 

17.  The  Railway  Board  of  Adjustment  Xo.  1  shall  keep  a  complete 
and  accurate  record  of  all  matters  submitted  for  its  consideration  and 
of  all  decisions  made  by  the  board. 

18.  A  report  of  all  cases  decided,  included  the  decision,  will  be  filed 
with  the  Director  Division  of  Labor,  of  the  Ignited  States  Railroad 
Administration,  with  the  chief  operating  officer  of  the  railrosul 
affected,  the  several  regional  directors,  and  with  the  chief  executive 
officers  of  the  organizations  concerned. 

19.  This  understanding  shall  become  effective  upon  its  approval 
by  the  Direct<)r  General  of  Railroads  and  shall  remain  in  full  force 
and  effect  during  the  period  of  the  present  war,  and  thereafter,  unless 
a  majority  of  the  regional  directors,  on  the  one  hand,  as  representing 
the  railroads,  or  a  majority  of  the  chief  executive  officers  of  the  orgaii- 
izations,  on  the  other  hancl,  as  representing  the  employees,  shall  desire 
to  terminate  the  same,  which  can,  in  these  circumstances,  be  done  on 
30  days'  formal  notice,  or  shall  be  terminated  by  the  Director  General 
himself,  at  his  discretion,  on  30  days'  formal  notice. 

Signed  and  sealed  this  22d  dav  of  March,  1918. 

A.  H.  Smith, 
C.  H.  Markham, 
R.  H.  AisHTOx, 
Regional  Directors  for  the  RcdJroads  under  Government  Control. 

W.  S.  Stone, 
Grand  Chief  Knglneer  Brotherhood  of  Locomotive  Engineers. 

A.  B.  Garretson, 
Presid-ent  Order  of  Railway  Conductors. 
W.  G.  Lee, 
President  Brotherhood  of  Railroad  Trainmen. 

Timothy  Shea. 
Acting  President  Brotherhood  of  Locomotive 

Firemen  and  Enginemen. 


General  Order  Xo.  14. 

"Washington,  March  2o.  1918. 
The  committee  on  transportation.  American  Railway  Association, 
having  at  the  request  of  the  Director  General,  submitted  a  report  in 


182 

connection  with  the  Federal  law.  •'  To  save  daylight  and  to  provide 
standard  time  for  the  United  States,"  which  becomes  effective  at 
2  a.  m.,  Sunday,  March  31,  1918,  the  following  instructions,  based 
on  such  report,  are  hereby  issued : 

First.  At  2  a.  m.,  Sunday.  ISIarch  31,  all  clocks  and  watches  in 
train  dispatchers'  offices,  and  in  all  other  offices  open  at  that  time, 
must  be  advanced  one  hour  to  indicate  3  a.  m. 

Employees  in  every  open  office  must,  as  soon  as  the  change  has  been 
made,  compare  time  with  the  train  dispatcher.  Clocks  and  watches 
in  all  oifices  at  the  first  opening,  at  or  after  the  time  the  change  be- 
comes effective,  must  be  advanced  to  conform  to  the  new  standard 
time,  and  employees,  before  assuming  duties  in  such  offices,  must, 
after  the  change  is  made,  compare  time  with  the  train  dispatcher. 

Second.  Each  railroad  will  issue  necessary  instructions  and  arrange 
for  such  supervision  and  check  of  the  watches  of  its  employees  as  to 
insure  that  they  have  been  properly  changed  to  conform  to  the  new 
standard  time. 

Third.  Owing  to  the  A'arying  conditions  which  will  prevail  on  the 
railroads  of  the  United  States,  it  is  not  advisable  to  issue  a  uniform 
rule  or  order  to  cover  the  details  involved  in  the  movement  of  trains 
at  the  period  the  change  in  standard  time  becomes  effective.  There- 
fore, each  railroad  must  adopt  such  measures  as  may  be  necessary  to 
properly  safeguard  the  movement  of  its  trains  on  the  road  at  the 
time  of  the  change. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General.  Order  Xo.  15. 

Washington,  March  26,  1918. 

The  following  requirements  must  be  observed  in  respect  of  the 
construction,  maintenance  and  operation  of  new  industry  tracks,  and 
in  respect  of  the  operation  and  maintenance  of  existing  industry 
tracks : 

1.  As  to  new  industry  tracks : 

{a)  The  industry  shall  pay  for.  own  and  maintain  that  part  of  tlie 
track  beyond  the  right  of  way  of  the  railroad  company. 

(6)  The  railroad  company  shall  pay  for,  own  and  maintain  that 
part  of  the  track  on  the  right  of  way  from  the  switch  point  to  the 
clearance  point. 

ic)  Generally  speaking,  an  industry  shall  pay  for  and  maintain 
(although  in  special  cases  the  railroad  company  may  do  so),  and  the 
raihoad  company  shall  own.  that  part  of  the  track  on  the  right  of 
way  from  the  clearance  point  to  the  right  of  way  line. 


EErvATUM. 

[Insert  in  BullPtin  No.  4   (K(>vis('d)   facing  pagro  182.] 


Supplement  Xo.  1  to  General  Order  No.  15. 

Washington,  Decemher  5,  1018. 
General  Order  No.  15,  dated  March  2<5th,  1918,  is  hereby  supple- 
mented as  follows : 

1.  General  Order  No.  15  is  not  to  be  construed  as  requiring  or 
authorizing  a  Federal  Manager  to  enter  into  a  contract  on  behalf 
of  the  Director  General  to  pay  for  that  part  of  an  industry  track  on 
the  right  of  way  from  the  switch  point  to  the  clearance  point  where, 
in  the  judgment  of  the  Federal  Manager,  the  amount  of  traffic  to  be 
derived  by  the  United  States  Railroad  Administration  from  the  con- 
struction of  the  industry  track  is  not  sufficient  to  justify  such  expendi- 
ture. In  cases  where,  in  the  judgment  of  the  Federal  Manager,  the 
circumstances  justify  the  construction  of  an  industry  track,  but  the 
amount  of  revenue  to  be  derived  therefrom  by  the  United  States  Rail- 
road Administration  does  not  justify  the  payment  by  the  Director 
General  of  the  cost  of  that  part  of  the  track  on  the  right  of  way  from 
the  switch  point  to  the  clearance  point,  an  agreement  may  be  made, 
otherwise  in  accordance  with  General  Order  No.  15,  but  providing  for 
the  payment  of  the  entire  cost  of  the  track  by  the  shipper  with  a  pro- 
vision for  refund  up  to,  but  not  exceeding,  the  cost  of  the  part  of  the 
track  from  the  switch  point  to  the  clearance  point,  at  the  rate  of  two 
dollars  ($2.00)  per  car  of  carload  freight  yielding  road  haul  revenue, 
delivered  on  or  shipped  from  the  track  during  Federal  control. 

2.  Track  material  contained  in  that  portion  of  an  industry  track 
on  the  railroad  right  of  way  which  was  installed  and  paid  for  by  the 
industry  during  Federal  control  shall  remain  the  property  of  the 
industry,  except  to  the  extent  that  refund  of  the  cost  thereof  shall  have 
been  made  by  the  railroad  or  the  Director  General,  but  such  ownership 
shall  be  subject  to  the  right  of  the  railroad  to  use  the  track  when  not 
to  the  detriment  of  the  industry. 

3.  Upon  the  discontinuance  of  use  of  an  industry  track  for  the 
purposes  of  the  industry,  the  industry  shall  have  the  right  to  have  the 
track  material  on  the  right  of  way  which  was  paid  for  by  the  industry 
during  Federal  control  taken  up  and  delivered  to  the  industry,  except 
to  the  extent  that  the  cost  of  such  track  material  shall  have  been 
refunded  to  the  industry  by  the  railroad  or  the  Director  General. 
The  work  of  taking  up  the  track  shall  be  done,  if  the  Federal  Manager 
shall  so  desire,  by  the  forces  of  the  Federal  Manager,  but  in  any  event 
at  the  expense  of  the  industry. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 

115473°— 19 


183 

{d)  If  the 'industry  fails  to  maintain  in  reasonably  safe  condition 
the  part  of  the  track  which  it  is  required  to  maintain,  the  railroad 
company  may  disconnect  the  track  or  refuse  to  operate  over  it  when 
not  in  such  condition. 

{e)  The  railroad  company  shall  have  the  right  to  use  the  track 
when  not  to  the  detriment  of  the  industry. 

(/)  The  foregoing  terms  and  conditions  should  be  embodied  in  a 
written  contract  between  the  industry  and  the  railroad  company. 

2.  Where  existing  industry  tracks  are  not  covered  by  written  con- 
tracts, they  shall  be  maintained  and  operated  in  accordance  with  the 
provisions  stated  in  paragraph  1  hereof. 

3.  Where  industry  tracks  are  covered  by  written  contracts,  such 
contracts  shall  be  adhered  to  until  otherwise  ordered ;  but  where  any 
such  contracts  appear  to  work  inequalities  or  injustice  the  circum- 
stances should  be  brought  to  the  attention  of  the  regional  director, 
who  will  report  thereon  to  the  Director  General,  if  conditions  seem 
to  warrant. 

4.  The  requirements  of  State  statutes  and  of  State  commissions  in 
respect  of  the  construction,  maintenance,  and  operation  of  industry 
tracks  shall  be  complied  with,  but  in  cases  where  such  compliance  in- 
volves what  appears  to  be  an  unreasonable  burden  upon  the  United 
States  Eailroad  Administration  the  circumstances  should  be  brought 
to  the  attention  of  the  regional  director,  who  will  report  thereon  to 
the  Director  General,  if  the  conditions  seem  to  warrant. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Okder  No.  16. 

Washington,  D.  C,  March  28, 1918. 

In  the  organization  of  the  various  carriers,  some  doubt  appears  at 
times  to  exist  as  to  the  extent  to  which,  if  at  all,  the  executive  au- 
thority in  operating  matters  is  divided  between  the  president  of  the 
company  and  the  chairman  of  its  board  of  directors,  or  of  some  com- 
mittee thereof. 

1^'or  the  purpose  of  simplification  and  definiteness  it  is  ordered  that 
the  president  of  each  company  shall  be  treated  by  the  United  States 
Railroad  Administration  as  the  company's  principal  executive  au- 
thority (subject  to  the  Director  General),  in  all  matters  of  operation 
under  Federal  control  and  that  chairmen  of  the  boards  of  directors 
or  of  some  committees  thereof  shall  not  exercise  functions  connected 
with  the  operation  of  the  railroads  under  Federal  control. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


184 

General  Okdek  No.  17. 

WAs^I^^GTOx,  D.  C,  April  3,  191S. 
To  th-e  chief  executive  officers  of  carriers  subject  to  Federal  control: 
It  is  hereby  ordered  that  the  following  rules  and  regulations  shall 
be  observed  and  shall  govern  the  recording  of  and  accounting  for  all 
transactions  Avhich  arise  during  Federal  control: 

1.  For  accounting  purposes  Federal  control  began  as  ot  January 
1,  1918.  Immediate  steps  shall  be  taken  by  each  carrier  subject 
thereto  to  open  ucav  and  separate  l)ooks  of  accounts,  such  as  cash 
books,  general  and  subsidiary  ledgers  and  journals,  and  all  support- 
ing and  subsidiary  books  and  records  incident  thereto,  upon  Avhich 
shall  be  recorded  transactions  -vvhich  arise  under  and  are  incident  to 
Federal  control  on  and  after  January  1,  1918.  Such  books  shall  be 
designated  and  are  hereinafter  referred  to  as  "  Federal  books. " 

2.  The  totals  of  the  accounts  "  Cash,"  "  Demand  loans  and  de- 
posits,*' and  "Time  drafts  and  deposits"  appearing  on  the  corpora- 
tion's books  as  of  December  31,  1917,  shall  be  transferred  to  the 
Federal  books,  debited  to  accounts  of  the  same  titles,  and  credited 
to  a  deferred  liabilty  account  styled  "(Name  of  corporation)  — 
Cash — December  31,  1917."  On  the  corporate  books  the  amount  of 
such  balances  should  be  transferred  to  a  deferred  asset  account 
styled  "U.  S.  Government— Cash— December  31,  1917."  All  cash 
transactions  subsequent  to  December  31,  1917,  relating  to  operations 
prior  or  subsequent  thereto,  shall  be  recorded  in  the  Federal  cash 
book  opened  as  of  January  1, 1918. 

3.  The  total  of  account  "  Net  balance  receivable  from  agents  and 
conductors"  appearing  on  the  corporation's  books  as  of  December 
31,  1917,  shall  be  transferred  to  the  Federal  books,  debited  to  an 
account  of  the  same  title,  and  credited  to  a  deferred  liability  account 
styled  "(Name  of  corporation) — Agents'  and  conductors'  balances — 
December  31,  1917."  On  the  corporate  books  the  amount  of  such, 
balances  should  be  transferred  to  a  deferred  asset  account  styled 
"  U.  S.  Government — Agents'  and  conductors'  balances — December 
31,  1917." 

4.  The  total  of  account  "  Materials  and  supplies "  appearing  on 
the  corporation's  books  as  of  Deceuiber  31,  1917,  shall  be  transferred 
to  the  Federal  books,  debited  to  an  account  of  the  same  title,  and 
credited  to  a  deferred  liability  account  styled  "(Name  of  corpora- 
tion)— Materials  and  supplies — December  31,  1917."  On  the  cor- 
porate books  the  amount  of  such  balance  should  be  transferred  to  a 
deferred  asset  account  styled  "  U.  S.  Government — Material  and  sup- 
plies—December 31,  1917." 

5.  In  addition  to  the  assets  above  specified,  there  shall  be  likewise 
transferred  to  the  Federal  books  and  similarlv  recorded  thereon,  such 


185 

other  AvorkiniT  assets  of  the  coi'poration  as  may  1)o  mntnally  agreed 
upon. 

6."  There  sliall  be  currently  entered,  upon  such  Federal  books,  in 
the  manner  and  under  the  rules  and  regulations  prescribed  by  the 
Interstate  Commerce  Commission  or  which  may  hereafter  be  pre- 
scribed, all  transactions  involving  revenues,  expenses,  taxes,  and 
rentals,  and  other  items  corresponding  to  those  which  constitute  the 
basis  upon  Avhicli  the  standard  return  to  the  carrier  shall  be  deter- 
mined. Such  entries  shall  include  corresponding  assets  and  liabili- 
ties and  the  cash  settlement  thereof;  also  all  transactions  involving 
materials  and  supplies  subsequent  to  December  31,  191T. 

7.  Transactions  of  the  corporation,  including  those  arising  out  of 
cash  receipts  or  disbursements,  which  do  not  affect  or  which  do  not 
enter  into  and  form  a  part  of  those  used  in  determining  the  basis  of 
standard  return,  such  as  interest  and  dividends  received  or  paid, 
miscellaneous  rents,  and  other  similar  corporate  transactions,  includ- 
ing additions  and  betterments,  shall  not  be  recorded  on  or  passed 
through  such  Federal  books  unless  such  transactions  be  negotiated 
and  conducted  for  account  of  the  corporation  by  or  under  the  direc- 
tion of  the  Director  General.  Where  such  income  transactions  are 
negotiated  and  conducted  by  or  under  the  direction  of  the  Director 
General  the  transactions  shall  be  recorded  on  the  Federal  books  but 
credited  or  charged  to  an  account  to  be  opened,  styled  "  (Name  of  cor- 
poration)— Corporate  income  transactions."  Concurrently,  corre- 
sponding entries  should  be  made  on  the  corporate  books  charging  or 
crediting  the  accounts  prescribed  by  the  Interstate  Commerce  Com- 
mission or  which  may  hereafter  be  prescribed,  the  offset  being  in  an 
account  styled  "  U.  S.  Government — Corporate  income  transactions." 
Where  additions  and  betterments  are  made  by  or  under  the  direction 
of  the  Director  General,  the  expenditures  shall  be  charged  on  the 
Federal  books  to  be  a  deferred  asset  account  "(Name  of  corpora- 
tion)— Additions  and  betterments."  Concurrently,  entries  should  be 
made  on  the  corporate  books,  charging  the  appropriate  accounts  and 
crediting  a  deferred  liability  account ''  U.  S.  Government — Additions 
and  betterments." 

8.  Current  or  operating  assets,  other  than  those  prescribed  in  para- 
graphs 2,  3,  4,  and  5  hereof,  such  as,  balances  due  from  indi- 
viduals and  companies,  and  liabilities,  such  as.  vouchers,  pay  rolls, 
etc.,  which  were  due  to  or  by  the  corporation  as  of  December  31,  1917, 
shall  not  be  transferred  in  detail  to  the  Federal  books;  but  as  and 
when  such  assets  are  collected  or  the  liabilities  are  paid,  they  shall  be 
credited  or  debited,  as  the  case  may  be,  on  the  Federal  books  to  a 
deferred  liability  account  styled  "(Name  of  corporation) — Assets, 
December  31,  1917.  collected,"  or  to  a  deferred  asset  account  "(Name 
of  corporation) — Liabilities,  December  31, 1917,  paid."  There  should 


186 

be  concurrently  made,  on  the  corporate  books,  corresponding  entries 
debiting  and  crediting  the  United  States  Government  with  assets  col- 
lected and  liabilities  paid. 

9.  Transactions  relating  to  operations,  as  defined  in  paragraph  6 
hereof,  if  not  previously  accrued,  shall  be  included  in  and  shall  form 
a  part  of  the  operating  results  of  each  carrier  regardless  of  the  date 
thereof.  Items  clearly  applicable  to  the  period  prior  to  January  1, 
1018,  commonly  called  "  lap-overs,"  shall  be  ascertained  currently,  set 
up  on  the  Federal  books,  and  included  in  the  appropriate  accounts  as 
heretofore.  At  the  end  of  each  month,  the  total  of  "  lap-over  "  credit 
items  shall  be  charged  to  an  unadjusted  debit  account  styled  "  Ke ve- 
nue prior  to  January  1,  1918,"  and  credited  to  a  deferred  liability 
account  styled  "  (Xame  of  corporation) — Ke  venue  prior  to  January  1, 
1918."  The  total  of  "  lap-over  "  debit  items  shall  be  credited  to  an 
unadjusted  credit  account  styled  "  Expense  prior  to  January  1, 191"8," 
and  charged  to  a  deferred  asset  account  styled  '*(Name  of  corpora- 
tion)— Expense  prior  to  January  1,  1918."  Operating  revenues 
which  have  been  accrued  currently  in  accordance  with  the  established 
practice  of  the. carrier  shall  be  considered  as  current  revenues  and 
not  as  "  lap-over  "  items. 

10.  The  accounts  between  the  United  States  Government  and  the 
corporation,  for  which  provision  is  made  herein,  shall  be  adjusted  in 
such  manner  as  may  be  hereafter  agreed  upon. 

11.  Inquiries  as  to  the  interpretation  and  application  of  the  pro- 
visions of  this  order  and  the  procedure  to  be  observed  under  its  re- 
quirements shall  be  addressed  to  the  Director  of  Public  Service  and 
Accounting. 

W.  G.  McAdoo, 
T) hector  General  of  Railroad f^. 


General  Order  No.  18. 

Washington,  Afril  .9,  1918. 

Whereas  the  act  of  Congress  approved  March  21,  1918,  entitled 
"  An  act  to  provide  for  the  operation  of  transportation  systems  while 
under  Federal  control,"  provides  (section  10)  "That  carriers  while 
under  Federal  control  shall  be  subject  to  all  laws  and  liabilities  as 
common  carriers,  whether  arising  under  State  or  Federal  laws  or  at 
common  law,  except  in  so  far  as  may  be  inconsistent  with  the  provi- 
sions of  this  act  or  with  any  order  of  the  President.  *  *  *  But 
no  process,  mesne  or  final,  shall  be  levied  against  any  property  under 
such  Federal  control":  and 

Whereas  it  appears  that  suits  against  the  carriers  for  personal  in- 
juries, freight  and  damage  claims  are  being  brought  in  States  and 


187 

jurisdictions  far  remote  from  the  place  where  plaintiffs  reside  or 
where  the  cause  of  action  arose,  the  effect  thereof  being  that  men  op- 
erating the  trains  engaged  in  hauling  war  materials,  troops,  muni- 
tions, or  supplies  are  required  to  leave  their  trains  and  attend  court 
as  witnesses,  and  travel  sometimes  for  hundreds  of  miles  from  their 
work,  necessitating  absence  from  their  trains  for  days  and  some- 
times for  a  week  or  more,  which  practice  is  highly  prejudicial  to  the 
just  interests  of  the  Government  and  seriously  interferes  with  the 
physical  operation  of  the  railroads,  and  the  practice  of  suing  in  re- 
mote jurisdictions  is  not  necessary  for  the  protection  of  the  rights  or 
the  just  interests  of  plaintiffs. 

It  is  therefore  ordered,  That  all  suits  against  carriers  while  under 
Federal  control  must  be  brought  in  the  county  or  district  where  the 
plaintiff  resides,  or  in  the  county  or  district  where  the  cause  of  action 
arose. 

W.  G.  McAdoo. 
Director  Geiieral  of  Railroad!^. 


General  Order  No.  18-A. 

Washington,  April  18,  1918. 
General  Order  No.  18  issued  April  9,  1918,  is  hereby  amended  to 
read  as  follows : 

It  is  therefore  ordered  that  all  suits  against  carriers  while  under  Federal 
control  must  be  brought  in  the  county  or  district  where  the  plaintiff  resided 
at  the  time  of  the  accrual  of  the  cause  of  action  or  in  the  county  or  district 
whei-e  the  cause  of  action  arose. 

.  W.  G.  McAdoo, 

Director  General  of  Railroads. 


General  Order  No.  19. 

Washington,  April  IJ,  1918. 

Pursuant  to  the  proclamation  of  the  President  of  the  United  States, 
the  undersigned,  as  Director  General  of  Railroads,  has  taken  pos- 
session and  assumed  control  of  the  Clyde  Steamship  Co.,  Mallory 
Steamship  Co.,  Merchants  &  Miners  Transportation  Co.,  and  South- 
ern Steamship  Co.,  at  12.01  a.  m.,  Saturday,  April  13,  1918.  Until 
further  order  it  is  directed  that : 

First.  All  officers,  agents,  and  employees  of  said  steamship  lines 
may  continue  in  the  performance  of  their  present  regular  duties,  i-e- 
porting  to  the  same  officers  as  heretofore  and  on  the  same  terms  of 
employment. 

Second.  Any  officer,  agent,  or  employee  desiring  to  retire  from  his 
employment  shall  give  the  usual  and  seasonable  notice  to  the  proper 


188 

officer  to  the  end  that  there  may  be  no  interruption  or  impairment 
of  the  transportation  service  required  for  the  successful  conduct  of 
the  war  and  the  needs  of  general  commerce. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  No.  20. 

Washington,  D.  C,  April  22,  WIS. 
Effective  at  once,  technical  and  arithmetical  examination  and 
checking  of  all  operating  bills  such  as  bills  for  freight  and  other 
claims,  joint  facilities,  car  repairs,  and  other  similar  bills  and  all 
statements  of  accounts  such  as  distribution  of  freight  and  passenger 
revenues  and  other  similar  statements,  rendered  by  one  carrier  sub- 
ject to  Federal  control  to  or  against  another  carrier  subject  to  Fed- 
eral control,  which  accrued  or  whicli  may  accrue  on  or  subsequent 
to  January  1, 1918,  shall  be  discontinued.  The  carrier  rendering  such 
statements,  bills,  etc.,  shall  take  the  necessary  measures  to  insure  the 
correctness  thereof. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  Xo.  21. 

Washington,  D.  C,  April  22,  1918. 

1.    SIMPLIFIED    BASES    FOR    APPORTIONING    INTERROAD    FREIGHT   REVENUES 
TO   CARRIERS  PERi^ORMING   THE   SERVICE. 

1.  Pursuant  to  the  provisions  of  paragraph  (13)  of  General  Order 
Xo.  11,  dated  March  16,  1918,  with  respect  to  the  adoption  of  uni- 
versal interline  waybilling,  the  following  regulations  will  be  ob- 
."frved  beginning  with  the  May,  1918,  accounts  in  apportioning 
freight  revenues  to  individual  carriers  subject  to  Federal  control 
which  perform  interroad   freight  service. 

2.  In  cases  where  interline  billing  has  been  in  effect  covering  all 
or  a  major  portion  of  froiglit  traffic  interchanged  between  two  or 
more  carriers  via  the  same  route,  although  the  interline  waybill  may 
not  cover  the  movement  from  origin  to  final  destination  of  the  traffic: 

(«)  The  waybill  destination  carrier  shall  determine,  from  inter- 
line division  statements  for  the  period  of  12  months  ended  Decem- 
ber 31,  1917,  the  aggregate  freight  revenue  on  interline  freight 
traffic  from  each  initial  waybilling  carrier  separately  via  each  route. 
There  shall  likewise  be  determined  the  amount  apportioned  to  each 


189 

mdividual  carrier  separately  via  each  route.  There  shall  be  included 
in  such  aggregate  freight  revenue,  and  in  the  amounts  due  to  each 
carrier,  as  their  interests  may  appear,  terminal  allowances,  bridge 
tolls,  lighterage,  insurance,  and  other  arbitraries.  If  the  interline 
method  of  accounting  became  effective  via  any  route  subsequent  to 
Januar}'^  1,  1917.  the  division  statements  for  the  longe>t  period  ob- 
tainable (not  exceeding  12  months)  prior  to  May  1,  1918.  shall  be 
used. 

(6)  From  the  aggregate  freight  revenue,  and  the  revenue  due  to 
each  carrier  via  each  route,  ascertained  in  the  manner  prescribed  in 
the  preceding  paragraph,  the  ratio  of  the  revenue  allotted  to  each 
carrier  via  each  route  to  the  total  revenue  shall  be  determined  and 
stated  in  two  figure  per  cents;  sucli  per  cents  shall  be  designated  as 
"  road  to  road  "  per  cents.  The  per  cents  thus  determined  for  each 
route  shall  be  used  for  apportioning  the  revenue  from  the  traffic 
moving  over  it  on  interline  waybills  to  be  accounted  for  beginning 
with  May,  1918,  accounts,  until  and  unless  otherwise  ordered. 

(c)  When  the  accounts  for  commodities  moving  in  large  volumes, 
such  as  coal,  have,  as  a  matter  of  general  practice,  been  kept  sepa- 
rately, separate  road  to  road  per  cents,  based  on  revenues  from  that 
class  of  traffic,  may  be  determined  as  above  prescribed  and  used  in 
apportioning  the  revenues  therefrom. 

3.  In  cases  where  interline  waybilling  has  not  been  in  effect  or 
where  it  has  l)eon  applied  to  only  a  small  part  of  tlie  traffic  moved 
between  two  or  more  carriers  via  the  same  route : 

((/)  Destination  carriers  of  the  freight  shall  apportion  and  settle 
the  revenues  on  interline  waybills  to  be  accounted  for  in  May,  1918, 
accounts  on  bases  of  established  divisions.  From  the  totals  of  pro- 
portions thus  settled,  destination  carriers  shall  compute  two  figure 
per  cents  for  traffic  for  each  initial  carrier  via  each  route.  Such  per 
cents  are  herein  designated  as  "  road  to  road  "  per  cents  and  shall  be 
used  thereafter  to  apportion  revenues  via  such  roads  and  routes,  re- 
spectively, on  that  class  of  traffic  unless  and  until  otherwise  ordered. 
When  traffic  moves  only  in  small  volume,  destination  carriers  may 
compute  two  figure  station  to  station  per  cents  based  on  revenues 
produced  by  the  application  of  established  division  bases,  and  use 
such  station  to  station  per  cents  instead  of  the  road  to  road  per  cents. 

(e)  In  the  event  freight  traffic  moves  during  the  month  of  June, 
1918,  or  thereafter  via  routes  over  which  there  were  no  freight  move- 
ments covered  by  interline  waybills  prior  thereto,  destination  car- 
riers shall  apply  the  established  divisions  in  apportioning  the  reve-  -, 
nue  on  such  shipments  during  the  month  in  which  the  traffic  first 
moves.  Thereafter,  the  revenue  on  such  traffic  shall  be  divided  on 
either  road  to  road  or  station  to  station  per  cents  as  may  be  ap- 
plicable. 


190 

(/)  TMien  the  accounts  for  coniniodities  moving  in  large  volumes, 
such  as  coal,  have  as  a  matter  of  general  practice,  been  kept  sei:)a- 
rately,  separate  road  to  road  per  cents  based  on  revenue  from  that 
class  of  traffic  may  be  determined  as  herein  prescribed  and  used  in 
apportioning  the  revenues  therefrom. 

4.  In  cases  where  freight  traffic  moves  via  unusual  or  diverted  routes 
over  which  no  divisions  apply  and  via  which  no  experience  can  be  ob- 
tained, destination  carriers  shall  apportion  the  revenues  therefrom 
on  a  20-mile  block-mileage  basis,  each  carrier  to  be  allowed  at 
least  20  miles  and  originating  and  terminal  carriers  an  additional 
20  miles  each  as  constructive  mileage. 

5.  The  formulae  prescribed  herein  for  apportioning  interline  freight 
revenues  to  carriers  performing  the  service  are  intended  to  pre- 
serve, as  equitably  as  practicable,  the  integrity  of  the  revenues  of 
individual  carriers,  and  their  use  shall  be  generally  observed.  If  by 
reason  of  new  traffic  developments,  or  the  abnormal  shifting  of  traffic, 
the  continued  application  of  the  road  to  road  per  cents  herein  pro- 
vided for  might  seriously  distort  the  revenues  of  interested  carriers, 
the  destination  carrier  may.  upon  its  own  initiative  or  by  request, 
test  apportionment  of  revenues  for  a  specific  month  or  period  by  ap- 
plying the  established  division  bases  thereto.  If  results  thus  ob- 
tained vary  substantially  from  the  results  obtained  by  the  application 
of  road  to  road  per  cents  as  herein  provided  for,  and  the  change 
appears  to  be  f)ermancnt,  application  may  be  made  to  the  Director  of 
Public  Service  and  Accounting  to  adjust  the  divisions  to  such  bases 
as  will  produce  more  equitable  results.  Applications  for  changed  ap- 
portionment bases  based  upon  ordinary  traffic  fluctuations  will  not 
be  considered. 

II.    MODIFICATION    OF    PRACTICES    IX    ACCOUXTTNG    FOR    FREIGHT    AXD 
RELATED    REVENUES. 

G.  Destination  carriers  shall  completely  revise  waybills  as  to  rates, 
classifications,  extensions,  footings,  weights,  etc.,  thus  insuring  the 
correctness  of  the  revenues  based  on  tariffs  applicable,  and  they  shall 
accoimt  to  interested  carriers  for  their  respective  proportions  of  such 
revenues  in  the  manner  hereinbefore  prescriljed.  If  flagrant  or  con- 
tinued use  of  erroneous  rates  or  classifications  be  observed  by  destina- 
tion carriers,  the  attention  of  billing  carriers  must  1)e'speciall_v  called 
thereto.  Where  ordinary  changes  or  corrections  are  made  in  way- 
billed  revenue  by  destination  agents,  correction  notices  need  not  be 
made  therefor  to  intermediate  or  originating  carriers  unless  advances 
or  prepaid  charges  be  involved. 

7.  Paragraph  10  of  General  Order  No.  11  provides  that  settlements 
by  destination  carriers  witli  all  other  interested  carriers  shall  be 
accepted  as  final.     This  provision  discontinues  the  adjustment  among 


191 

carriers  of  overcharges  and  undercharges  in  revenue,  but  does  not 
prohibit  the  adjustment  of  differences  in  advances  and  prepaid  items, 
clerical  errors  in  addition  and  divisions,  or  errors  due  to  omissions, 
diversions,  etc. 

8.  Effective  at  once,  no  apportionment  shall  be  made  among  car- 
riers of  charges  absorbed,  such  as  switching,  elevation,  transfer 
charges,  terminal  delivery  charges,  icing,  cost  of  grain  and  coal  doors, 
and  other  similar  items  accruing  during  Federal  control;  such  ab- 
sorbed charges  shall  be  borne  by  paying  carrier: 

III.    ^lODIFir.VTIOXS    AXD     IXTERPRETATIOXS    OF    GENERAL    ORDER     XO.     11. 

9.  Paragraph  11  of  General  Order  No.  11  prescribes  certain  forms 
to  be  used  in  preparing  audit  office  settlement  accounts.  Until  fur- 
ther ordered,  carriers  may  use  sucli  prescribed  forms  or  they  may 
use  those  now  in  use  by  them  in  settlement  of  interline  freight  ac- 
counts until  such  time  as  a  more  complete  study  is. made  of  the  forms 
which  will  later  be  prescribed. 

10.  Subparagraph  (b)  of  paragraph  8  of  General  Order  No.  11 
provides  that :  "  Only  the  original  and  one  copy  of  the  waybill  shall 
be  made."  This  provision  is  hereby  amended  to  the  extent  of  per- 
mitting carriers  taking  such  additional  copies  of  waybills  as  may  be 
necessary  to  maintain  the  integrity  of  the  accounts.  The  first  copy 
must  be  printed  in  the  same  form  as  the  original,  but  may  be  on  a 
lighter  weight  of  paper.  Any  additional  copies  beyond  the  first  may 
be  prepared  on  blank  paper. 

11.  While  paragraph  8  of  General  Order  Xo.  11  provides  for  a 
standard  form  of  waybill,  such  order  does  not  prohibit  the  continua- 
tion or  adoption  of  a  color  scheme  for  waybills  for  specific  or  special 
traffic  when  such  color  scheme  tends  to  expedite  or  protect  the  freight. 

12.  If,  under  prevailing  practices,  freights  originating  on  or  des- 
tined to  points  on  switching  or  tap  lines  are  waybilled  from  or  to 
trunk-line  junctions  or  connections  with  such  switching  or  tap  lines 
and  junction,  settlements  are-made  at  such  points  of  connections,  such 
practices  may,  until  further  ordered,  be  continued. 

W.  G.  :^IcAdoo, 
Director  General  of  Railroads. 


General  Order  Xo.  22. 

Washixgtox,  April  22,  1918. 
Mr.  G.  A.  Tomlinson  is  hereby  appointed  general  manager  of  the 
X"ew  York  Canal  Section  of  the  United  States  Railroad  Administra- 
tion and  as  such  will  have  charge  of  the  construction  and  acquisition 
of  equipment  for  use  upon  the  Xew  York  State  Barge  Canal  and,  as 


192 

an  incident  thereto,  for  use  upon  the  waters  connecting  therewith,  and 
will  operate  such  equipment  for  the  Director  General  of  Railroads 
upon  such  canal  and  other  waters. 

He  is  hereby  empowered  to  enter  into  contracts,  either  in  his  own 
name  as  such  general  manager  or  in  the  name  of  the  Director  General 
of  Railroads,  for  the  constmction,  acquisition,  or  chartering  of  such 
equipment,  for  the  purchase  of  supplies  needed  in  such  operation,  and 
for  the  transportation  of  property  upon  such  canal  and  other  waters. 

^V.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  Xo.  23. 

Washington,  D.  C,  May  2, 1918. 
Each  and  every  carrier  subject  to  Federal  control  shall  render  a 
weekly  cash  report  on  Form  T-5,  as  per  copy  herewith. 
The  first  report  shall  be  rendered  as  of  May  4,  1918. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


!  Form  T-5.1 


(Name  of  company.) 
Statement  of  cash  resources  and  requirements. 


.,191 


(Date  of  end  of  week.) 


Code. 


Cash  on  hand  and  in  banks  (as  defined  in  T.  C.  C.  account  708),  inchidiug  demand 
loans  and  deposits  (I.  C.  C.  account  709),  less  amount  of  any  outstandingchecks: 

In  New  York 

In  Chicago 

Tn  St .  Louis 

In  other  cities  and  towns 


Amount  (cents 
omitted). 


T  ot  al  cash 

Time  drafts  and  time  defjosits  receivable  during  current  month 

Estimated  amount  of  othercash  receipts  during  remainder  of  current  month. . 

Total 

E  stimat  ed  amont  of  cash  receipts  during  month  subsequent  t  o  current  m  ont  li . . 

Total  resources 

Unpaid  vouchers  actually  outstandins 

Unp;iid  i)ay  rolls  or  pay-roll  checks 

Interest  matured  unpaid 

Dividends  matured  unpaid 

Other  liabilities,  including  notes  and  funded  debt,  due  and  payable  during 

current  month 


Total 

Kstimated amount  of  additional  obligations,  including  notes  and  funded  debt, 
due  and  payable  during  month  subsequent  to  current  month 

Total  requirements 

Excess  of  resources  over  requirements 

Excess  of  requirements  over  resources 


193 

Statement  of  cash  resources  and  requirements — Continued. 

TIME  DRAFTS  RECEIVABLE  AND  TIME   DEPOSITS  WITH  BANKS  AND  TRUST 
COMPANIES  (I.  C.  C.  ACCOUNT  710). 


Date  receivable. 

Receivable  from— 

Amount. 

I  hereby  certify  that  the  above  statement  is  correct. 


,191  

(Place  and  date.)  Title. 

INSTRUCTIONS. 

This  statement  shall  be  rendered  as  of  the  end  of  each  week  and  shall  be 
mailed  as  quickly  as  possible  thereafter  to  "  Treasurer,  United  States  Railroad 
Administration,  Interstate  Commerce  Building,  Washington,  D.  C." 

Particulars  of  any  large  or  unusual  items  included  in  items  "  O  "  or  "  Q,"  such 
as  notes  or  funded  debt  maturing,  etc.,  should  be  given  in  memorandum  and 
attached  to  statement.  If  requested  to  telegraph  statement,  give  name  of  com- 
pany, foi-m  number  and  date  of  statement,  code,  and  amounts,  and  mail  copy 
of  telegram  and  statement  in  confirmation. 


Supplement  No.  1  to  General  Order  No.  23. 

Washington,  D.  C,  August  13,  1918. 
Effective  with  report  for  the  week  ending  August  17,  1918,  the 
following  instructions  shall  govern  the  rendering  of  the  Weekly  Cash 
Report,  Form  T-5. 

(1)  Where  Federal  treasurers  have  been  appointed,  their  reports 
shall  include  only  transactions  affecting  the  cash  controlled  by  them, 
in  accordance  with  the  provisions  of  General  Order  No.  37.  Reports 
as  to  transactions  affecting  other  (corporate)  cash  will  not  be  required. 

(2)  As  and  when  Federal  treasurers  are  appointed  they  shaU  com- 
mence to  render  the  reports  to  include  only  transactions  affecting  the 
cash  controlled  by  them,  in  accordance  with  the  provisions  of  General 
Order  No.  37.  Reports  as  to  transactions  affecting  other  (corporate) 
cash  may  then  be  cUscontinued. 

(3)  Otherwise  the  reports  shall  continue  to  be  made  up  as  at 
present. 

(4)  These  instructions  also,  of  course,  apply  to  all  acting  Federal 
treasurers,  as  well  as  to  the  treasurers  whose  nominations  have  been 
confii'ined. 

A  supply  of  revised  forms  will  be  sent  you. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 

105889°— 19 13   - 


194 
General  Order  No.  24. 

Washington,  D.  C,  May  16,  1918. 

On  April  30  a  telegram  was  sent  to  carriers,  instructing  them  not  to 
renew  any  expiring  fire  insurance  policies  on  property  in  Federal 
control,  and  not  to  take  out  any  new  fire  insurance  policies  upon  such 
property.  It  was  provided  that  carriers  might  call  attention  to  cases 
calling  for  exceptional  treatment.  A  letter  was  sent  to  the  carriers 
confirming  this  telegram,  and  the  letter  suggested  care  for  fire  pre- 
vention in  terms  similar  to  the  last  paragraph  of  this  order. 

It  is  desired  to  extend  the  instructions  to  other  insurance  than  fire 
insurance,  excepting  only  bonds  or  policies  insuring  fidelity  of  em- 
ployees in  handling  funds. 

Carriers,  therefore,  are  now  instructed  not  to  renew  any  expiring 
insurance  of  any  character  covering  property  in  Federal  control  or 
any  liability  in  connection  with  the  operation  or  use  of  anv  such 
property,  or  liability  for  property  transported  or  stored  by  carriers 
under  Federal  control,  and  not  to  take  out  any  new  policies,  or  place 
any  additional  or  new  risks  under  existing  policies,  of  such  insur- 
ance, except  that  this  order  shall  not  relate  to  bonds  or  policies  in- 
suring the  fidelity  of  employees  in  handling  funds.  Such  fidelity 
bonds  or  policies  shall  be  continued,  and  proper  provision  made  for 
any  necessary  changes,  as  heretofore.  Carriers  may  present  to  the 
Director  General  any  special  circumstances  which  they  believe  call 
for  exceptional  treatment. 

If  the  termination  of  insurance  in  accordance  with  this  order  re- 
sults, as  to  any  particular  property,  in  the  discontinuance  by  the  in- 
surance company  of  inspection  or  other  measures  for  prevention  of 
loss,  it  will  be  desirable  to  adopt  proper  substitute  therefor,  and  the 
carrier  shall  make  reasonable  and  proper  temporary  provision  for 
such  inspection  or  other  preventive  measures,  reporting  its  action  to 
this  office. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  No.  25. 

Washington,  May  20.,  1918. 

Effective  July  1,  1918,  the  collection  of  transportation  charges 
by  carriers  under  Federal  control,  for  services  rendered,  shall  be  on 
a  cash  basis,  and,  effective  as  of  that  date,  credit  accommodations 
then  in  existence  which  may  be  in  conflict  with  the  following  regula- 
tions shall  be  canceled. 

1.  Tickets  shall  be  sold  only  for  cash  in  advance  of  service.  Bag- 
gage charges  are  subject  to  the  same  rule  as  tickets,  except  C.  O.  D. 


195 

baggage  and  storage  charges,  which  must  be  paid  in  cash  before  de- 
livery. 

2.  In  cases  where  the  enforcement  of  this  rule  with  respect  to 
freight  will  retard  prompt  forwarding  or  delivery  of  the  freight  or 
the  prompt  release  of  equipment  or  station  facilities,  carriers  will  be 
permitted  to  extend  credit  for  a  period  of  not  exceeding  forty-eight 
(48)  hours  after  receipt  for  shipment  of  a  consignment  if  it  be  pre- 
paid, or  after  delivery  at  destination  if  it  be  a  collect  consignment, 
provided  the  consignor  if  it  be  a  prepaid  consignment,  or  the  con- 
signee if  it  be  collect,  file  a  surety  bond  either  individual  or  corpor- 
ate, in  an  amount  satisfactory  to  the  treasurer  of  the  carrier.  The 
form  of  such  bond  shall  be  prescribed  by  the  chief  legal  officer  of  the 
individual  carrier,  conditioned  upon  and  providing  for  payment  of 
all  charges  within  forty-eight  (48)  hours  after  forwarding  or  deliv- 
ery of  the  freight.  Upon  receipt  and  acceptance  of  such  bond  a  car- 
rier may  accept  and  forward  prepaid  consignments  or  may  deliver 
collect  consignments  in  advance  of  payment  of  all  charges  thereon 
to  the  amount  covered  by  the  bond.  Failure  to  pay  such  charges 
within  the  time  prescribed  will  automatically  cancel  such  credit. 

8.  Treasurers  of  individual  carriers  are  required  to  arrange  and 
conduct  all  matters  relating  to  such  credits.  They  shall  designate 
the  amount,  and  accept  or  reject  the  surety  offered.  Bonds  may  be 
required  and  accepted  for  individual  consignments  or  blanket  bonds 
may  be  accepted  from  individual  shippers  or  consignees  to  cover  all 
of  their  consignments  for  a  given  period;  the  period  of  the  credit 
in  such  cases  shall,  however,  be  limited  to  forty-eight  (48)  hours  on 
each  shipment  as  prescribed  in  the  preceding  paragraph. 

4.  In  case  of  any  question  as  to  the  accuracy  of  charges,  bills  must 
be  paid  as  rendered  and  claims  presented  for  alleged  errors.  This 
will  not  prevent  adjustments  by  agents  of  obvious  errors. 

5.  Freight  consigned  to  "  order "  or  to  "  order  notify "  shall  be 
delivered  only  upon  surrender  to  the  agent  of  the  carrier  of  the 
original  bills  of  lading  for  such  freight,  and  the  payment  of  the 
freight  charges  thereon  as  herein  provided.  Provided,  however,  if 
such  bill  of  lading  be  lost  or  delayed  the  freight  may  be  delivered  in 
advance  of  surrender  of  the  bill  of  lading  upon  receipt  by  the  car- 
rier's agent  of  a  certified  check  for  an  amount  equal  to  one  hundred 
and  ten  (110)  per  cent  of  the  invoice,  or  upon  receipt  of  a  surety 
bond  either  individual  or  corporate,  acceptable  to  the  treasurer  of 
the  carrier,  in  an  amount  for  twice  the  amount  of  the  invoice. 

6.  The  extension  or  creation  of  local  collection  bureaus  or  agencies 
will  be  authorized  by  the  Director  of  Public  Service  and  Accounting, 
as  and  when  such  bureaus  may  be  found  to  be  necessary  or  expedient. 

7.  Bonding  or  underwriting  arrangements  with  respect  to  credits 
extended,  now  in  effect  by  individual  carriers,  shall  be  discontinued 


196 

as  of  July  1,  1918,  or  as  soon  thereafter  as  existing  contracts  are  ter- 
minable. 

8.  Advice  of  the  foregoing  regulations  shall  be  promptly  given  to 
all  to  whom  credit  accommodations  are  now  given  to  the  end  that 
the  regulations  may  be  put  into  effect  at  the  time  specified  with  as 
little  inconvenience  as  possible. 

9.  Payment  of  transportation  charges  by  check  will  be  considered 
as  a  payment  in  cash  if  the  person,  firm,  or  company  signing  or  in- 
dorsing it  is  known  to  the  agent  to  be  fully  reliable.  Checks  are  not 
to  be  taken  or  cashed  by  agents  under  any  circumstances,  except  for 
transportation  charges. 

10.  Until  otherwise  ordered,  the  foregoing  rules  will  not  apply  to 
transportation  service  rendered  other  departments  of  the  Federal 
Government. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  No.  25-A. 

Washington,  June  12^  1918. 

The  effective  date  of  General  Order  No.  25,  which  provides  for 
placing  the  collection  of  transportation  charges  on  a  cash  basis  on 
and  after  July  1,  1918,  is  hereby  postponed  to  August  1.  1918. 

The  rules  governing  the  collection  of  transportation  charges  pre- 
scribed in  General  Order  No.  25  are  hereby  amended  and  will  not 
apply  to  transportation  service  rendered  to — 

The  various  departments  and  bureaus  of  the  United  States  Gov- 
ernment. 

The  nations  allied  with  the  United  States  in  war. 

The  various  States  of  the  United  States. 

The  counties  and  municipalities  of  such  States. 

The  District  of  Columbia  and  Alaska. 

The  American  Red  Cross. 

W.   G.   McAdoo. 
Director  General  of  Railroads. 


General  Order  No.  26. 

Washington,  May  33,  WIS. 
Whereas  the  act  of  Congi-ess  approved  March  21,  1918,  entitled 
"  An  act  to  provide  for  the  operation  of  transportation  systems  while 
under  Federal  control,"  provides  (sec.  10)  "That  carriers  while 
under  Federal  control  shall  be  subject  to  all  laws  and  liabilities  as 
common  carriers,  whether  arising  under  State  or  Federal  laws  or  at 


197 

common  .law,  except  in  so  far  as  may  be  inconsistent  with  tlie  pro- 
visions of  this  act  *  *  *  or  with  any  order  of  the  President. 
*  *  *  But  no  process,  mesne  or  final,  shall  be  levied  against  any 
property  under  such  Federal  control ;  "  and  authorizes  the  Presi- 
dent to  exercise  any  of  the  powers  by  said  act  or  theretofore  granted 
him  with  relation  to  Federal  control  through  such  agencies  as  he 
might  determine;  and 

AVhereas  by  a  proclamation  dated  March  29,  the  President,  acting 
under  the  Federal  control  act  and  all  other  powers  him  thereto 
enabling,  authorized  the  Director  General,  either  personally  or 
through  such  divisions,  agencies,  or  persons,  or  in  the  name  of  the 
President,  to  issue  any  and  all  orders  which  may  in  any  way  be 
found  necessary  and  expedient  in  connection  with  the  Federal  con- 
trol of  systems  of  transportation,  railroads,  and  inland  waterways 
as  fully  in  all  respects  as  the  President  is  authorized  to  do,  and 
generally  to  do  and  perform  all  and  singular  acts  and  things  and  to 
exercise  all  and  singidar  the  powers  and  duties  which  in  and  by  the 
said  act,  or  any  other  act  in  relation  to  the  subject  hereof,  the  Presi- 
dent is  authorized  to  do  and  perform ;  and 

Whereas  it  appears  that  there  are  now  pending  against  carriers 
under  Federal  control  a  great  many  suits  for  personal  injury,  freight 
and  damage  claims,  and  that  the  same  are  being  passed  for  trial  by 
the  plaintiffs  in  States  and  jurisdictions  far  removed  from  the  place 
where  the  persons  alleged  to  have  been  injured  or  damaged  resided 
at  the  time  of  such  injury  or  damage,  or  far  remote  from  the  place 
where  the  causes  of  action  arose ;  the  effect  of  such  trials  being  that 
men  operating  the  trains  engaged  in  hauling  war  materials,  troops, 
munitions  or  supplies,  are  required  to  leave  their  trains  and  attend 
court  as  witnesses,  and  travel  sometimes  for  hundreds  of  miles  from 
their  work,  necessitating  absence  from  their  trains  for  days  and 
sometimes  for  a  week  or  more;  which  practice  is  highly  prejudicial 
to  the  just  interests  of  the  Government  and  seriously  interferes  with 
the  physical  operation  of  railroads;  and  the  practice  of  trying  such 
cases  during  Federal  control  in  remote  jurisdictions  is  not  necessary 
for  the  protection  of  the  rights  or  the  just  interests  of  plaintiffs: 

It  is  therefore  ordered,  That  upon  a  showing  by  the  defendant  car- 
rier that  the  just  interests  of  the  Government  would  be  prejudiced  by 
a  present  trial  of  any  suit  against  any  carrier  under  Federal  control, 
which  suit  is  not  covered  by  General  Order  No.  18  and  which  is  now 
pending  in  any  county  or  district  other  than  where  the  cause  of 
action  arose  or  other  than  in  which  the  person  alleged  to  have  been 
injured  or  damaged  at  that  time  resided,  the  suit  shall  not  be  tried 
during  the  period  of  Federal  control:  Provided,  If  no  suit  on  the 
same  cause  of  action  is  now  pending  in  the  county  or  district  where 
the  cause  of  action  arose,  or  where  the  person  injured  or  damaged  at 


198 

that  time  resided,  a  new  suit  may,  upon  proper  service,  be  instituted 
therein ;  and  if  such  suit  is  now  barred  by  the  statute  of  limitations, 
or  will  be  barred  before  October  1,  1918,  then  the  stay  directed  by 
this  order  shall  not  apply  unless  the  defendant  carrier  shall  stipulate 
in  open  court  to  waive  the  defense  of  the  statute  of  limitations  in  any 
such  suit  which  may  be  brought  before  October  1,  1918. 

This  order  is  declared  to  be  necessary  in  the  present  war  emergency. 
In  the  event  of  unnecessary  hardship  in  any  case,  either  party  may 
apply  to  the  Director  General  for  relief,  and  he  will  make  such  order 
therein  as  the  circumstances  may  require  consistent  with  the  public 
interest. 

This  order  is  not  intended  in  any  way  to  impair  or  affect  General 
Order  No.  18  as  amended  by  General  Order  No.  18- A. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  No.  27. 
preamble. 

Washington,  May  25, 1918. 

In  promulgating  this  order  I  wish  to  acknowledge  the  patriotic 
service  so  unselfishly  rendered  by  the  Railroad  Wage  Commission, 
consisting  of  Messrs.  Franklin  K.  Lane,  Charles  C.  McChord,  J. 
Harry  Covington,  and  William  E.  Willcox  in  connection  with  the 
important  question  of  wages  and  hours  of  service  of  railroad  em- 
ployees which  I  referred  to  them  by  my  General  Order  No.  5,  dated 
January  18,  1918. 

This  commission  took  hold  of  the  task  with  great  energy  and 
devotion  and  has  dealt  with  the  entire  subject  in  a  thoroughly 
sympathetic  spirit. 

Manifestly  in  a  matter  of  such  magnitude  and  complexity  it  is  im- 
possible to  find  any  general  basis  or  formula  which  would  correct 
every  inequality  and  give  satisfaction  to  every  interest  involved.  But 
the  commission  has  made  an  earnest  effort  to  do  justice  to  all  con- 
cerned. I  have  felt  obliged,  however,  to  depart  from  its  recommen- 
dations in  some  particulars. 

With  respect  to  hours  of  service  the  commission  says : 

Manifestly,  therefore,  at  this  time,  when  men  must  be  constantly  taken  from 
the  railroads,  as  from  all  other  industries,  to  fill  the  growing  needs  of  the 
Nation's  Army,  hours  of  labor  can  not  be  shortened  and  thereby  a  greater 
number  of  men  be  required  for  railroad  work.  The  Nation  can  not,  in  good 
faith,  call  upon  the  farmers  and  the  miners  to  work  as  never  before  and  press 
themselves  to  unusual  tasks,  and  at  the  same  time  so  shorten  the  hours  of 
railroad  men  as  to  call  from  farm  and  mine  additional  and  unskilled  men  to 
run  the  railroads.     While  the  commission  is  strongly  disposed  to  a  standard 


199 

day  in  so  far  as  the  nature  of  the  service  will  permit  it.  its  firm  judgment  con- 
sequently is  that  the  existing  hours  of  service  in  effect  on  the  railroads  should 
be  maintained  for  the  period  of  the  war. 

But  with  this  we  earnestly  urge  that  a  most  exhaustive  study  be  made  of 
this  matter  of  hours  of  service,  not  \\-ith  a  view  to  the  adoption  of  some  arbi- 
trary and  universal  policy  which  shall  have  no  I'egard  to  the  kind  of  work 
done,  or  to  the  effect  upon  the  railroad  service,  but  with  these  very  considera- 
tions in  mind.  And  we  have  gone  into  this  matter  far  enough  to  justify  to 
ourselves  the  belief  that  by  the  steady  application  of  such  sympathetic  consid- 
eration the  railroad  service  may  be  improved  and  at  the  same  time  fuller 
opportunity  be  given  for  lifting  a  burden  that  falls  disproportionately  upon 
some  of  the  less  favored  of  the  railroad  workers. 

The  commission  also  reached  the  conclusion  that  as  to  overtime 
"the  existing  rules  and  conditions  of  payment  should  not  be  dis- 
turbed during  the  period  of  the  war."  The  commission  has  pointed 
out  that  this  is  not  the  time  for  any  experiments  which  might  lessen 
the  tons  of  freight  hauled  and  the  number  of  passengers  carried 
when  the  urgent  and  serious  necessities  of  the  war  compel  sacrifices 
from  all,  and  that  the  adoption  of  any  plan  which  would  prevent 
the  Government  from  working  its  men  as  long  as  they  have  been  in 
the  habit  of  working  under  private  employers  would  be  to  take  ad- 
vantage of  the  grave  war  necessities  of  the  Government  and  to  em- 
barrass it  in  carrying  forward  essential  operations  of  the  war  at  a 
time  when  the  need  of  service  was  never  greater  and  the  ability  to 
call  in  outside  men  is  seriously  impaired. 

There  has  never  been  a  time  when  the  public  interest  demanded 
more  urgently  the  devotion  and  unselfish  service  of  all  classes  of 
railroad  employees.  I  agree  with  the  commission  that  it  is  not 
practicable  at  this  time,  when  the  war  is  calling  upon  every  class 
of  loyal  citizens  for  service  and  sacrifices,  to  reduce  the  actual  hours 
of  labor  to  eight  in  every  line  of  railroad  work. 

Xevertheless  I  am  convinced  that  no  further,  inquiry  is  needed  to 
demonstrate  that  the  principle  of  the  basic  eight-hour  day  is  reason- 
able and  just  and  that  all  further  contentions  about  it  should  be  set 
at  rest  by  a  recognition  of  that  principle  as  a  part  of  this  decision. 

Recognition  of  the  principle  of  the  basic  eight-hour  day  in  railroad 
service  is,  therefore,  hereby  made. 

The  question  arises  as  to  what  further  steps  can  and  ought  justly 
to  be  taken  to  strengthen  the  application  of  that  principle,  and  when. 
This  question  must  be  solved  in  the  light  of  the  varied  conditions  of 
railroad  employment  and  will  have  to  be  studied  in  detail  by  the 
Board  of  Railroad  Wages  and  Working  Conditions  herein  and  hereby 
created  and  in  the  light  of  what  is  reasonably  practicable  under  war 
conditions. 

Xo  problem  so  vast  and  intricate  as  that  of  doing  practical  justice 
to  the  2,000,000  railroad  employees  of  the  country  can  be  regarded 


200 


as  completely  settled  and  disposed  of  by  any  one  decision  or  order ; 
therefore  the  Board  of  Eailroad  Wages  and  Working  Conditions  is 
hereby  established  and  will  take  up  as  presented  any  phases  of  the 
general  problem  relating  to  any  class  of  employees  or  any  part  of  a 
class  of  employees  which  may  justly  call  for  further  consideration. 

It  is  my  earnest  hope  that  railroad  officials  and  railroad  em- 
ployees will  realize  that  their  relations  under  Federal  control  are  not 
based  upon  the  old  conditions  of  private  management.  Dissensions 
and  disappointments  should  be  forgotten  and  all  should  now  remem- 
ber that  they  are  not  only  serving  their  country  in  the  operation  of 
the  railroads,  but  that  upon  the  character,  quality,  and  loyalty  of  that 
service  depends  in  large  measure  our  success  in  this  war. 

It  is  an  inspiring  task — this  task  of  putting  upon  a  more  just  and 
equitable  basis  the  wages  and  working  conditions  of  loyal  workers  in 
railroad  service — and  I  confidently  expect  the  patriotic  support  and 
assistance  of  every  railroad  official  and  every  railroad  employee  in 
])erforming  that  task  with  credit  to  each  other  and  with  honor  to 
their  country. 

ORDER. 

Respecting  the  wages,  hours,  and  other  conditions  of  employment 
of  the  employees  of  the  railroads  hereinafter  mentioned,  it  is  hereby 
ordered : 

Article   I. — Railroads  Affected. 

This  order  shall  apply  to  the  employees  of  the  folloAving  rail- 
roads : 


Alabama  &  Vicksburg  Ry.  Co. 

Alabama  Great  Southern  11.  H.  Co. 

Ann  Arbor  R.  R.  Co. 

Arizona  &  New  Mexico  Ry.  Co. 

Arizona  Eastern  R.  R.  Co. 

Atchison,  Topelja  &  Santa  Fe  Ry.  Co. 

Atlanta  &  West  Point  R.  R.  Co. 

Atlanta,  Birmingham  &  Atlantic  ■  Ry. 
Co. 

Atlantic  Coast  Line  R.  R.  Co. 

Atlantic  &  St.  Lawrence  R.  R.  Co. 

Atlantic  City  R.  R.  Co. 

Baltimore  &  Ohio  R.  R.  Co. 

Bangor  &  Aroostook  R.  R.  Co. 

Bessemer  &  Lake  Erie  R.  R.  Co. 

Boston  &  aiaine  R.  R. 

Buffalo  &  Susquehanna  R.  R.  Corpora- 
tion. 

Buffjilo,  Rochester  &  Pittsburg  Ry.  Co. 

Carolina,  Clinchfleld  &  Ohio  Ry. 

Central  of  Georgia  Ry.  Co. 

Central  New  England  Ry.  Co. 


Central  R.  R.  Co.  of  New  .Jersey. 

( "eutral  Vermont  Ry.  Co. 

Charleston  &  Western  Carolina  Ry.  Co. 

Chesapeake  &  Ohio  Ry.  Co. 

Chicago  &  Alton  R.  R.  Co. 

Chicago  &  Eastern!  Illinois  R.  R.  «"o. 

Chicago  &  Erie  R.  R.  Co. 

Chicago  &  North  Western  Ry.  Co. 

Chicago,  Burlington  &  Quincy  R.  R.  Co. 

<Miicago  Great  Western  H.  R.  <'o. 

Cliicago,    Detroit     &    Canada     (4raiid 

Trunk  .Junction  K.  K.  Co. 
Chicago,  Indianapolis  «S:  Louisville  Hy. 

Co. 
Chicago,  Milwaukee  &  St.  Paul  Ry.  Co. 
Chicago,  Peoria  &  St.  Louis  R.  R.  Co. 
Chicago,  Rock  Island  &  Gulf  Ry.  Co. 
Chicago,  Rock  Island  &  Pacific  Ry.  Co. 
Chicago,     St.     Paul,     IMinneapoIis     & 

Omaha  Ry.  Co. 
Chicago,  Terre  Haute  &  Southeastern 

Jiy.  Co. 


201 


Cincinuiiti.  Indianapolis  &  Western  R. 

R.  Co. 
Cincinnati,  New  Orleans  &  Texas  Pa- 
cific Ry.  Co. 
Cincinnati  Northern  R.  R.  Co. 
Cleveland,   Cincinnati,   Chicago   &   St. 

Louis  Ry.  Co. 
Coal  &  Coke  Ry.  Co. 
Colorado  &  Southern  Ry.  Co. 
Cumberland  Valley  R.  R.  Co. 
Delaware  &  Hudson  Co. 
Delaware,  Lackawanna  &  Western  R. 

R.  Co. 
Denver  &  Rio  Grande  R.  R.  Co. 
Detroit  &  Mackinac  Ry.  Co. 
Detroit  &  Toledo  Shore  Line  R.  R.  Co. 
Detroit,    Grand   Haven   &   Milwaukee 

Ry.  Co. 
Detroit,  Toledo  &  Ironton  R.  R.  Co. 
Duluth  &  Iron  Range  R.  R.  Co. 
Duluth,  Missabe  &  Northern  Ry.  Co. 
Duluth,  South  Shore  &  Atlantic  Ry.  Co. 

Elgin,  Joliet  &  Eastern  Ry.  Co. 

El  Paso  &  Southwestern  Co. 

Erie  R.  R.  Co. 

Florida  East  Coast  Ry.  Co. 

Fcrt  Smith  &  Western  R.  R.  Co. 

Fort  Worth  &  Denver  City  Ry.  Co. 

Fort  Worth  &  Rio  Grande  Ry.  Co. 

Galveston,  Harrisburg  &  San  Antonio 
Ry.  Co. 

Georgia  R.  R.  Lessee  Organization. 

Georgia  Southern  &  Florida  Ry.  Co. 

Grand  Rapids  &  Indiana  Ry.  Co. 

Grand  Trunk  W^estern  Ry.  Co, 

Great  Northern  Ry.  Co. 

Gulf  &  Ship  Island  R.  R.  Co. 

Gulf,  Colorado  &  Sant<i  Fe  Ry.  Co. 

Gulf,  Mobile  &  Northern  R.  R. 

Hocking  Valley  Ry.  Co. 

Houston  &  Texas  Central  R.  R.  Co. 

Houston  East  &  West  Texas  R.  R.  Co. 

Hudson  &  Manhattan  R.  R. 

Illinois  Central  R.  R.  Co. 

International  &  Great  Northern  Ry.  Co. 

Kanawha  &  Michigan  Ry.  Co. 

Kansas  City  Southern  Ry.  Co. 

Lake  Erie  &  Western  R.  R.  Co. 

liChigh  &  Hudson  River  Ry.  Co. 

Lf  high  &  New  England  R.  R.  Co. 

Lehigh  Valley  R.  R.  Co. 

Long  Island  R.  R.  Co. 

Los  Angeles  &  Salt  Lake  R.  R.  Co. 


Louisiana  &  Arkansas  Ry.  Co. 
Louisiana  Ry.  &  Navigation  Co. 
Louisiana  Western  R.  R.  Co. 
Louisville  &  Nashville  R.  R.  Co. 
Louisville,  Henderson  &  St.  Louis  Ry. 

Co. 
Maine  Central  R.  R.  Co. 
Midland  Valley  R.  R.  Co. 
Michigan  Central  R.  R.  Co. 
Minneapolis  &  St.  Louis  R.  R.  Co. 
Minneapolis,  St.  Paul  &  S.  Ste.  Marie 

Ry.  Co. 
IMissouri,  Kansas  &  Texas  Ry.  Co. 
Missouri,  Kansas  &  Texas  Ry.  Co.  of 

Texas. 
Mii-souri  Pacific  R.  R.  Co. 
Mobile  &  Ohio  R.  R.  Co. 
Monongahela  Ry.  Co. 
Morgan's  Louisiana  &  Texas  R.  R.  & 

S.  S.  Co. 
Nashville,  Chattanooga  &  St.  Louis  Ry. 
New  Orleans  &  Northeastern  R.  R.  Co. 
New  Orleans,  Texas  &  Mexico  R.  R. 

Co. 
New  York  Central  R.  R.  Co. 
New  York,  Chicago  &  St.  Louis  R.  R. 

Co. 
New   York,   New   Haven   &   Hartford 

R.  R.  Co. 
New  York,  Ontario  &  Western  Ry.  Co. 
New  York,  Philadelphia  &  Norfolk  R. 

R.  Co. 
New  York,  Susquehanna  &  Western  R. 

R.  Co. 
Norfolk  &  Western  Ry.  Co. 
Norfolk  Southern  R.  R.  Co. 
Northern  Pacific  Ry.  Co. 
Northwestern  Pacific  R.  R.  Co. 
Oregon  Short  Line  R.  R.  Co. 
Oregon-AVashington   R.   R.   &   Naviga- 
tion Co. 
Panhandle  &  Santa  Fe  Ry.  Co. 
Pennsylvania  Co. 
Pennsylvania  R.  R.  Co. 
Ptre  Marquette  R.  R.  Co. 
Philadelphia  &  Reading  Ry.  Co. 
Philadelphia,  Baltimore  &  Washington 

R.  R.  Co. 
Pittsburgh  &  Lake  Erie  R.  R.  Co. 
Pittsburgh  &  Shawmut  R.  R.  Co. 
Pittsburgh  &  West  Virginia  Ry.  Co. 
Pittsburgh,  Cincinnati,  Chicago  &  St. 
Louis  R.  R.  Co. 


202 


Port  Reading  R.  R.  Co. 

Richmond,  Fredericksburg  &  Potomac 

R.  R.  Co. 
Rutland  R.  R.  Co. 
Seaboard  Air  Line  Ry.  Co. 
San  Antonio  &  Aransas  Pass  Ry.  Co. 
Southern  Pacific  Co. 
Southern   Ry.   Co. 
Southern  Ry.  Co.  In  Mississippi. 
Spoljane,  International  Ry.   Co. 
Spokane,  Portland  &  Seattle  Ry.  Co. 
Staten  Island  Rapid  Transit  Ry.  Co. 
St.  Joseph  &  Grand  Island  Ry.  Co. 
St.  Louis,  Brownsville  &  Mexico   Ry. 

Co. 
St.  Louis-San  Francisco  Ry.  Co. 
St.  Louis,  San  Francisco  &  Texas  Ry. 

Co. 
St.  Louis  Southwestern  Ry.  Co. 
St.    Louis    Southwestern    Ry.    Co.    of 

Texas. 
Tennessee  Central  R.  R.  Co. 
Texarkana  &  Fort  Smith  Ry.  Co. 
Texas  &  New  Orleans  R.  R.  Co. 


Texas  &  Pacific  Ry.  Co. 
Toledo  &  Ohio  Central  Ry.  Co. 
Toledo,  Peoria  &  Western  Ry.  Co. 
Toledo,  St.  Louis  &  Western  R.  R.  Co. 
Ulster  &  Delaware  R.  R.  Co. 
Union  Pacific  R.  R.  Co. 
Utah  Ry.  Co. 
Vieksburg,    Shreveport    &   Pacific    Ry. 

Co, 
Virginian  Ry.  Co. 
Wabash  Ry.  Co. 
Washington  Southern  Ry.  Co. 
West  Jersey  &  Seashore  R.  R.  Co. 
Western  Maryland  Ry.  Co. 
Western  Pacific  R.  R.  Co. 
Western  Ry.  of  Alabama. 
Wheeling  &  Lake  Erie  R.  R.  Co. 
Wichita  Falls  &.  Northwestern  Ry.  Co. 
Wichita  Valley  Ry.  Co.  ' 
Yazoo  &  Mississippi  Valley  R.  R.  Co. 

And  all  terminal,  union  station, 
and  switching  companies,  all  or  a  ma- 
jority of  whose  stock  is  owned  by 
railroads  named  above. 


Such  other  railroads  as  may  be  retained  in  Federal  control  oh 
July  1,  1918,  will  be  added  to  the  foregoing  list  by  order  of  the 
Director  General. 

The  Pullman  Co.,  whose  status  is  now  being  considered,  will  also 
be  added  by  order  to  the  foregoing  list,  if  decision  shall  be  reached 
to  retain  it  in  Federal  control. 

Article  II. — Rates  or  Wages  and  Methods  of  Computation. 

Increases  in  wages,  effective  as  hereinafter  provided,  January  1, 
1918,  are  hereby  established  as  follows : 


Section  A. — Rates  of  war/es  of  railroad  employees  paid  upon  a  monthly  basis. 


To  the  monthly  rate  of  pay  of  men  receivins;  in  Decem- 
ber, 191.5,  the  amounts  named  In  this  column. 


Add  the  per 

cent  named 

in  this 

column. 


Equivalent 

to  amoimt 

named  in 

this  column. 


Making  new 

rate  per  month 

as  shown  in 

this  column. 


Under  $46  (except  as  provided  in  par.  1.3, 

page  22) 

?4r,.01  to  $47 

$47.01  to  $48 

$48.01  to  $49 

$49.01  to  $50 


43 
43 
43 
43 


$20. 00 
20.21 
20.64 
21.07 
21.  50 


$67.  21 
68.64 
70.07 
71.50 


Columns  2  and  3  in  the  above  table  are  explanatory  of  the  method  of  arriv- 
ing at  the  "  new  rates  "  included  in  column  4.  The  roads  will  substitute  for 
the  "old  rates"  of  December,  1915,  scheduled  in  column  1,  the  "new  rates" 
listed  in  column  4. 


203 

Section  A. — Rates  of  icaffcs  of  railrond  cmpJoyees  paid  upon  a  montlihj  hasis- 

Continued. 


To  the  monthly  rate  of  pay  of  men  receiving  in  Decem- 
ber, 1915,  "the  amounts  named  in  this  column. 


$50.01  to  $51.. 

$51.01  to  S52.. 
$52.01  to  $53.. 
$53.01  to  $54.. 
$54.01  to  $55.., 
$55.01  to  $5G.. 
$56.01  to  $57.. 
$57.01  to  $58... 
$58.01  to  $59... 
$59.01  to  $60... 
$60.01  to  $61... 
$61.01  to  $62... 
$62.01  to  $63... 
$63.01  to  $64... 
$64.01  to  $65... 
$65.01  to  $66... 
$66.01  to  $67... 
$67.01  to  $68... 
$68.01  to  $69... 
$69.01  to  $70... 
$70.01  to  $71... 
$71.01  to  $72... 
$72.01  to  $73... 
$73.01  to  $74... 
$74.01  to  $75... 
$75.01  to  $76... 
$76.01  to  $77... 
$77.01  to  $78... 
$78.01  to  $79... 
$79.01  to  $80... 
$80.01  to  $81... 
$81.01  to  $82... 
$82.01  to  $83... 
$83.01  to  $84... 
$84.01  to  $85... 
$85.01  to  $86... 
$86.01  to  $87... 
$87.01  to  $88... 
$88.01  to  $89... 
$89.01  to  $90... 
$90.01  to  $91... 
$91.01  to  $92... 
$92.01  to  $93... 
$93.01  to  $94... 
$94.01  to  $95... 
$95.01  to  $96... 
$96.01  to  $97... 
$97.01  to  $98... 
$98.01  to  $99... 
$99.01  to  $100.. 
$100.01  to  $101. 
$101.01  to  $102. 
$102.01  to  $103. 


-Vdd  the  per 

cent  named 

in  this 

column. 


Equivalent 

to  amount 

named  in 

this  column. 


Making  new 

rate  per  month 

as  shown  in 

this  column. 


42.  35 

41.  73 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

41 

40.87 

40.44 

40 

40 

40 

40 

39.36 

38.74 

38.13 

37.53 

36.  95 

36.38 

35.  82 

35.27 

34.74 

34.22 

33.70 

33.20 

32.71 

32.23 

31.75 

31.29 

30.84 

30.39 


$21. 60 
21.70 
21.73 
22.14 
22.55 
22.96 
23.27 
23.78 
24.19 
24.60 
25.01 
25.42 
25.83 
26.24 
26.65 
27.06 
27.47 
27.88 
28.29 
28.70 
29.11 
29.52 
29.93 
30.34 
30.75 
31.16 
31.57 
31.98 
32.39 
32.70 
32.75 
32.80 
33.20 
33.60 
34.00 
33.85 
33.70 
33.55 
33.40 
33.25 
33.10 
32.95 
32.80 
32.65 
32.50 
32.35 
32.20 
32.05 
31.90 
31.75 
31.60 
31.45 
31.30 


$72.  60 
73.70 
74.73 
76.14 
77.55 
78.  96 
80.37 
81.78 
83.19 
84.60 
86.01 
87.42 
88.  83 

90.  24 

91.  65 
93.06 
94.47 
95.  88 
97.29 
98.70 

100.  11 

101.  52 

102.  93 

104.  34 

105.  75 
107.16 

108.  57 

109.  98 
111. 39 
112.  70 
113. 75 
114.  80 

116.  20 

117.  ()0 
119.  00 

119.  85 

120.  70 

121.  55 
122. 10 

123.  25 

124.  10 

124.  95 

125.  80 

126.  65 
127. 50 
128.  35 
129. 20 
130.  05 

130.  90 

131.  75 

132.  60 
133. 45 
134.  30 


Columns  2  and  3  in  the  above  table  are  explanatory  of  the  method  of  arriving  at  the 
"new  rates"  included  in  column  4.  The  roads  will  sul^stitute  for  the  "old  rates"  of 
December,  1915,  scheduled  in  column  1,  the  "new  rates"  listed  in  column  4. 


204 

Section  A. — Rates  of  iraf/rs  of  ra\lro(Hl  vinploi/ccs  paid  upon  a  luontlihj  hos'ts- 

Continuetl. 


To  the  monthly  rate  of  pay  of  men  receivius;  in  Decem- 
ber, 1915,  the  amounts  named  in  this  column. 


$103 

$104. 
$105. 
$106. 
$107. 
$108. 
$109. 
$110. 
$111. 
$112. 
$113. 
$114. 
$115. 
$110. 
$117. 
$118. 
$119. 
$120. 
$121. 
$122, 
$123. 
$124. 
$125, 
$126, 
$127, 
$128, 
$129, 
$130, 
$131 
$132, 
$133, 
$134, 
$135, 
$136, 
$137 
$138 
$139 
$140 
$141 
$142 
$143 
$144 
$145 
$146 
$147 
$148 
$149 
$150 
$151 
$152 
$153 
$154 


01  to  $104. 
01  to  $105. 
01  to  $106. 
01  to  $107. 
01  to  $108. 
01  to  $109. 
01  to  $110. 
01  to  $111. 
01  to  $112. 
01  to  $113. 
01  to  $114. 
01  to  $115. 
01  to  $116. 
01  to  $117. 
01  to  $118. 
01  to  $119. 
01  to  $120. 
01  to  $121. 
01  to  $122. 
01  to  $123. 
01  to  $124. 
01  to  $125. 
01  to  $126. 
01  to  $127. 
01  to  $128. 
01  to  $129. 
01  to  $130. 
01  to  $131. 
01  to  $132. 
01  to  $133. 
01  to  $134. 
01  to  $135. 
01  to  $136. 
01  to  $137. 
01  to  $138. 
01  to  $139. 
01  to  $140. 
01  to  $141. 
01  to  $142. 
01  to  $143. 
01  to  $144. 
01  to  $145. 
01  to  $146. 
01  to  $147. 
,01  to  $148. 
,01  to  $149. 
,01  to  $150. 
,01  to  $151. 
01  to  $152. 
,01  to  $153. 
.01  to  $154. 
.01  to  $155. 


Add  the  per 

cent  named 

in  this 

column. 


29.96 
29.53 
29.11 
28.70 
28.29 
27.89 
27.50 
27.12 
26.74 
26.38 
26.01 
25.60 
25.31 
24.96 
24.62 
24.29 
23.96 
23.64 
23.32 
23.01 
22.70 
22.40 
22.11 
21.81 
21.53 
21.24 
20.96 
20.69 
20.42 
20.15 
19.89 
19.63 
19.38 
19.13 
18.88 
18.64 
18.39 
18.16 
17.92 
17.69 
17.47 
17.24 
17.02 
16.80 
16.59 
16.38 
16.17 
15.96 
15.  76 
15.56 
15.36 
15.16 


3 

Equivalent 

to  amount 

named  in 

this  column. 


Making  new 

j  rate  per  month 

as  shown  in 

this  column. 


$31.  15 
31.00 
30.85 
30.70 
30.  55 
30.40 
30.25 
30.10 
29.  95 
29.80 
29.65 
29.50 
29.35 
29.20 
29.05 
28.90 
28.75 
28.00 
28.45 
28.30 
28.15 
28.00 
27.85 
27.70 
27.  55 
27.40 
27.25 
27.10 
26.  95 
26.80 
26.65 
26.  50 
26.35 
26.  20 
26.05 
25.90 
25.75 
25.  60 
25.45 
25.30 
25.15 
25.00 
24.85 
24.70 
24.  55 
24.40 
24.  25 
24.10 
23.  95 
23.80 
23.  65 
23.  50 


Columns  2  and  3  in  the  above  table  are  explanatory  of  tlie  method  of  arriving 
at  the  "new  rates"  included  in  column  4.  The  roads  will  substitute  for  the 
"  old  rates  "  of  December,  IDin,  scheduled  in  column  1,  the  "  new  rates  "  listed 
in  column  4. 


205 

Section  A. — Rates  of  leaves  o1  railroad  vitiployees  paid  upon  a  monthly  ^r/.s/.s- 

Coutinued. 


To  the  monthly  rate  of  pay  of  mcu  receivine;  in  Decem- 
ber, 1915,  the  amounts  named  in  this  column. 


Add  the  per 

cent  named 

in  this 

column. 


$155.01  to  $156 

$156.01  to  $157 

$157.01  to  $158 

$158.01  to  $159 

$159.01  to  $100 

$160.01  to  $161 

$161.01  to  $162 

$162.01  to  $163 

$163.01  to  $164 

$164.01  to  $165 

$165.01  to  $166 

$166.01  to  $167 

$167.01  to  $168 

$168.01  to  S169 

$169.01  to  $170 

$170.01  to  $171 

$171.01  to  $172 

$172.01  to  1173 

$173.01  to  $174 

$174.01  to  $175 

$175.01  to  $176 

$176.01  to  $177 

$177.01  to  $178 

$178.01  to  $179 

$179.01  to  $180 

$180.01  to  $181 

$181.01  to  $182 

$182.01  to  $183 

$183.01  to  $184 

$184.01  to  $185 

$185.01  to  $186 

$186.01  to  $187 

$187.01  to  $188 

$188.01  to  $189 

$189.01  to  $190 

$190.01  to  $191 

$191.01  to  $192 

$192.01  to  $193 

$193.01  to  $194 

$194.01  to  S195 

$195.01  to  $196 

$196.01  to  $197 

$197.01  to  $198 

$198.01  to  $199 

$199.01  to  $200 

$200.01  to  $201 

$201.01  to  S202 

$202.01  to  $203 

$203.01  to  $204 

$204.01  to  $205 

$205.01  to  $206 

$206 .01  to  $207 

Columns  2  and  3  in  the  above  table  are  explanatory  of  the  method  of  arriving  at 
the  "new  rates"  included  in  column  4.  The  roads  will  substitute  for  the  "old 
rates"  of  December,  1915,  scheduled  in  column  1,  the  "new  rates"  listed  in 
column  4. 


14.97 

14.78 

14.59 

14.40 

14.22 

14.04 

13.86 

13.68 

13.51 

13.33 

13.16 

13.00 

12.83 

12.66 

12.50 

12.34 

12.18 

12.02 

11.87 

11.71 

11.56 

11.41 

11.26 

11.12 

10.97 

10.83 

10.69 

10.55 

10.41 

10.27 

10.14 

10.00 

9.87 

9.74 

9.61 

9.48 

9.35 

9.22 

9.10 

8.97 

8.85 

8.73 

8.61 

8.49 

8.375 

8.26 

8.14 

8.03 

7.92 

7.80 

7.69 

7.58 


Equivalent 

to  amount 

named  in 

this  column. 


$23.  35 
23.20 
23.05 
22.90 
22.75 
22.60 
22.45 
22.30 
22.15 
22.00 
21.85 
21.70 
21.55 
21.40 
21.25 
21.10 
20.95 
20.80 
20.65 
20.  50 
20.35 
20.20 
20.05 
19.90 
19.75 
19.60 
19.45 
19.30 
19. 15 
19.00 
18.85 
18.70 
18.55 
18.40 
18.25 
18.10 
17.95 
17.80 
17.65 
17.50 
17.35 
17.20 
17.  05 
16.90 
16.75 
16.60 
16.45 
16.30 
16.15 
16.00 
15.85 
15.70 


Making  new 

rate  per  month 

as  shown  in 

this  column. 


$179.  35 

180.  20 

181.  05 

181.  90 

182.  75 

183.  60 

184.  45 

185.  30 

186.  15 

187.  00 

187.  85 

188.  70 

189.  55 

190.  40 

191.  25 

192.  10 

192.  95 

193.  80 

194.  65 

195.  50 

196.  35 

197.  20 

198.  05 

198.  90 

199.  75 
200. 60 
201.45 
202.  30 
203. 15 
204.  00 
204. 85 
205. 70 
206. 55 
207. 40 
208. 25 
209. 10 
209. 95 
210. 80 
211.65 
212. 50 
213. 35 
214. 20 
215.  05 
215. 90 
216. 75 
217. 60 
218. 45 
219. 30 
220. 15 
221.00 
221.85 
222. 70 


206 

Section  A. — Rates  of  tcages  of  railroad  employees  paid  upon  a  monthly  basis- 

Coutinued. 


To  the  monthly  rate  of  pay  of  men  receiving  in  Decem- 
ber, 1915,  the  amoimts  named  in  this  column. 


Add  the  per 

cent  named 

in  this 

column. 


Equivalent 

to  amount 

named  in 

this  column. 


Making  new 

rate  per  month 

as  shown  in 

this  column. 


$207.01 
$208.01 
$209.01 
$210.01 
$211.01 
$212.01 
$213.01 
$214.01 
$215.01 
$216.01 
$217.01 
$218.01 
$219.01 
$220.01 
$221.01 
$222.01 
$223.01 
$224.01 
$225.01 
$226.01 
$227.01 
$228.01 
$229.01 
$230.01 
$231.01 
$232.01 
$233.01 
$234.01 
$235.01 
$236.01 
$237.01 
$238.01 
$239.01 
$240.01 
$241.01 
$242.01 
$243.01 
$244.01 
$245.01 
$246.01 
$247.01 
$248.01 
$249.01 


to  $208. 
to  $209. 
to  $210. 
to  $211. 
to  $212. 
to  $213. 
to  $214. 
to  $215. 
to  $216. 
to  $217. 
to  §218. 
to  $219. 
to  $220. 
to  $221. 
to  $222. 
to  $223. 
to  $224. 
to  $225. 
to  $226. 
to  $227. 
to  $228. 
to  $229. 
to  $230. 
to  $231. 
to  $232. 
to  $233. 
to  $234 . 
to  $235 . 
to  $236. 
to  $237. 
to  $238. 
to  $239. 
to  $240. 
to  $241. 
to  $242. 
to  $243. 
to  $244 . 
to  $245. 
to  $246 . 
to  $247 . 
to  $248. 
to  $249. 
to  $250. 


7.48 

7.37 

7.26 

7.16 

7.05 

6.95 

6.85 

6.74 

6.64 

6.54 

6.445 

6.35 

6.25 

6.15 

6.06 

5.96 

5.87 

5.78 

5.69 

5.595 

5.50 

5.415 

5.33 

5.24 

5.15 

5.  005 

4.98 

4.89 

4.81 

4.73 

4.64 

4.56 


$15. 55 

15.40 

15.  25 

15.10 

14.95 

14.80 

14.65 

14.50 

14.35 

14.20 

14.05 

13.90 

13.75 

13.60 

13.45 

13.30 

13.15 

13.00 

12.85 

12.70 

12.55 

12.40 

12.25 

12.10 

11.95 

11.80 

11.65 

11.  50 

11.35 

11.20 

11.05 

10.90 

10.00 

9.00 

8.00 

7.00 

6.00 

5.00 

4.00 

3.00 

2.00 

1.00 

.00 


$223.  55 
224. 40 
225. 25 
226. 10 
226. 95 
227. 80 
228. 65 
229. 50 
230. 35 

231.  20 
232. 05 

232.  90 
233. 75 
234. 60 
235. 45 
236. 30 
237. 15 
238. 00 
238. 85 
239. 70 
240. 55 
241.40 
242. 25 
243. 10 
243. 95 
244. 80 
245. 65 
246.  50 
247. 35 
248.  20 
249. 05 
249. 90 
250.  00 
250. 00 
250. 00 
250.  00 
250.  00 
250.  00 
250.  00 
250.  00 
250.  00 
250.  00 
250.  00 


Columns  2  and  3  in  the  above  table  are  explanatory  of  the  method  of  arriving  at 
the  "new  rates"  included  in  column  4.  The  roads  will  substitute  for  the  "old 
rates"  of  December,  1915,  scheduled  in  column  1,  the  "new  rates"  listed  in 
column  4. 

METHOD   OF  APPLYING   INCREASES- TO    MONTHLY   RATES. 

1.  The  employee  who  holds  the  same  position  to-day  that  he  did 
the  last  day  of  December,  1915,  and  who  then  received  $75  a  month 
and  has  received  no  increase  since,  will  receive  an  additional  wage 
of  $30.75  per  month.  If  ho  has  received  an  increase  in  these  two 
years  of  $10  per  month,  the  recommended  increase  of  his  wage  will 
l)e  cut  down  by  that  much,  making  his  net  advance  $20.75 


207 


2.  Employee  "A"  occupied  the  same  position  in  1915  and  in  1918: 
Salary,  1915,  $150  per  month;  1918,  $175  per  month. 

Basis  of  increase  on  salaries  of  $150  per  month  is  16.17  per  cent, 
or  $24.25  per  month.  New  salary,  $174.25;  present  salary,  $175. 
Present  salary  undisturbed. 

3.  Employee  "  B  "  in  1915  received  $100,  and  on  the  same  desk  in 
1918  received  $112.50  per  month.  Basis  of  increase  on  $100,  31.75 
per  cent,  or  $31.75.  New  salary,  $131.75.  Present  salar}',  $112.50. 
Employee  "  B  "  is  entitled  to  receive  back  pay  from  January  1,  at 
the  rate  of  $19.25  (the  difference  between  $131.75  and  $112.50),  and 
to  receive  monthh%  hereafter,  $131.75  instead  of  $112.50.  Back  pay 
due  January  1  to  May  31,  $96.26. 

4.  Employee  in  December,  1915,  received  $100  per  month,  en- 
titles him,  with  this  increase,  to  $131.75.  His  salary  had  been  raised 
for  same  position  on  January  1,  1918,  to  $135.  He  is  not,  therefore, 
entitled  to  any  advance  or  back  pay.    Present  salary  undisturbed. 

Section  B. — Rates  of  icagcs  of  railroad  employees  paid  upon  daily  basis. 


Old  rate 

New  rate 

Old  rate 

New  rate 

Old  rate 

New  rate 

Old  rate 

New  rate 

per  day. 

per  day. 

per  day. 

per  day. 

per  day. 

per  day. 

per  day. 

per  day. 

$0.75 

$1.52 

$2.50 

$3.53 

$4.25 

$5.40 

$5.95 

$6.85 

.80 

1.57 

2.55 

3.60 

4.30 

5.45 

6.00 

6.90 

.85 

1.62 

2.60 

3.67 

4.35 

5.49 

6.05 

6.94 

.90 

1.67 

2.65 

3.74 

4.40 

5.53 

6.10 

6.98 

.95 

1.72 

2.70 

3.81 

4.45 

5.58 

6.15 

7.02 

1.00 

1.77 

2.75 

3.88 

4.50 

5.62 

6.20 

7.06 

1.05 

1.82 

2.80 

3.95 

4.  55 

5.66 

6.25 

7.11 

1.10 

1.87 

2.85 

4.02 

4.60 

5.71 

6.30 

7.15 

1.15 

1.92 

2.90 

4.09 

4.65 

5.75 

6.35 

7.19 

1.20 

1.97 

2.95 

4.16 

4.70 

5.79 

6.40 

7.23 

1.25 

2.02 

3.00 

4.23 

4.  75 

5.83 

6.45 

7.28 

1.30 

2.07 

3.05 

4.30 

4.80 

5.88 

6.50 

7.32 

1.35 

2.12 

3.10 

4.36 

4.85 

5.92 

6.55 

7.36 

1.40 

2.17 

3.15 

4.41 

4.90 

5.96 

6.60 

7.41 

1.45 

2.22 

3.20 

4.48 

4.95 

6.00 

6.65 

7.45 

1.50 

2.27 

3.25 

4.  55 

5.00 

6.05 

6.70 

7.49 

1.55 

2.32 

3.30 

4.60 

5.05 

6.09 

6.75 

7.53 

1.60 

2.37 

3.35 

4.65 

5.10 

6.13 

6.80 

7.58 

1.65 

2.42 

3.40 

4.70 

5.15 

6.17 

6.85 

7.62 

1.70 

2.47 

3.45 

4.72 

5.20 

6.21 

6.90 

7.66 

1.75 

2.52 

3.50 

4.77 

5.25 

6.26 

6.95 

7.70 

1.80 

2.57 

3.55 

4.81 

5.  .30 

6.30 

7.00 

7.75 

1.85 

2.65 

3.60 

4.85 

5.35 

6.34 

7.05 

7.79 

1.90 

2.72 

3.65 

4.90 

5.40 

6.38 

7.10 

7.83 

1.95 

2.77 

3.70 

4.94 

5.45 

6.43 

7.]5 

7.88 

2.00 

2.83 

3.75 

4.98 

5.50 

6.47 

7.20 

7.91 

2.05 

2.89 

3.80 

5.03 

5.  55 

6.51 

7.25 

7.96 

2.10 

2.96 

3.85 

5.07 

5.60 

6.55 

7.30 

8.00 

2.15 

3.03 

3.90 

5.11 

5.65 

6.60 

7.35 

8.04 

2.20 

3.10 

3.95 

5.15 

5.70 

6.64 

7.40 

8.08 

2.25 

3.17 

4.00 

5.20 

5.75 

6.68 

7.45 

8.13 

2.30 

3.24 

4.05 

5.24 

5.80 

6.73 

7.50 

8.17 

2.35 

3.31 

4.10 

5.28 

5.85 

6.77 

7.55 

8.21 

2.40 

3.38 

4.15 

5.32 

5.90 

6.81 

7.60 

8.25 

2.45 

3.45 

4.20 

5.36 

1 

Old  rates  "  are  those  of  December,  1915. 


208 

For  common  labor  paid  by  the  day,  the  scale  of  new  rates  per  day 
shown  shall  aj^ply,  with  the  provision,  hoAvever.  that  as  a  mini- 
mum 20  cents  per  8-hoiir  day,  22^  cents  per  9-honr  day,  25  cents  per 
10-hour  day,  27^  cents  per  11-hour  day,  and  30  cents  per  12-hour  day 
will  be  added  to  the  rates  paid  per  day  as  of  December  31.  1917. 

METHOD   OF   APPLYING   INCREASES    TO   DAILY    RATES. 


1.  Employee,  December,  1915,  $3.00: 

Increased  to  new  rate  of  $4.23  per  day $109.98 

Jan.  1,  191S,  liis  pay  was  raised  for  same  work  to  .$3.50  per  day.  eqiial 
per  moutli  to : 'Jl.  00 

Dilference  in  pay : 

1  montli 18.98 

5  months 94.  90 

An  8-hour  26-day  month  both  years. 

Worked   62  hours  overtime,   at  new  1918  rate 52.  9<-     $32.  80 

Was  paid  62  hours  overtime  at 37.  o^*       23.25         9.55 

Total  back  pay  due  Jan.  1  to  May  31,  1918 104.  45 

2.  Employee  "  C  "  was  employed  in  1918  but  not  in  1915.  Rate 
of  pay  on  the  district  where  he  is  employed  in  1918,  in  1915  was  $1.10 
per  day.  The  1918  rate  of  pay  is,  on  the  same  district,  $1.50  per  day. 
The  new  rate  is  $1.87  per  day.  He  will,  therefore,  be  entitled  to  re- 
ceive from  January  1,  1918,  to  May  31.  1918.  37  cents  per  day  addi- 
tional for  each  day  he  worked  in  that  period. 

Section  C — Rates  of  iragcs  of  railroad  empJoyecs  paid  upon  hourly  basis. 

fRates  of  pa}'  in  cents  per  hour.     "  Old  rates"  are  those  of  December,  1915.] 


Old  rate 

New  rate 

Old  rate 

New  rate 

Old  rate 

New  rate 

Old  rate 

New  rate 

per  hour. 

per  hour. 

per  hour. 

per  hour. 

per  hour. 

per  hour. 

per  hour. 

per  hour. 

10 

19.75 

20 

29.75 

30 

42.  50 

I           40 

56.00 

10.5 

20.25 

20.5 

30.25 

30.5 

43.00 

40.5 

56.  75 

11 

20.75 

21 

30.75 

31 

43.75 

41 

57.25 

11.5 

21.25 

21.5 

31.25 

31.5 

44.50 

41.5 

57.  75 

12 

21.75 

22 

31.75 

32 

45.25 

42 

58.25 

12.5 

22.25 

22.5 

32.25 

32.5 

40.00 

I         42.5 

58.50 

13 

22.75 

23 

33.00 

33 

46.75 

1         43 

59.00 

13.5 

23.25 

23.5 

.33.  75 

33.5 

47.25 

43.5 

59.50 

14 

23.  75 

24 

34.  50 

34 

48.00 

i         44 

60.  00 

14.5 

24.  25 

24.5 

35.  00 

34.  5 

48.75 

1         44.5 

60.25 

15 

24.75 

25 

35.50 

35 

49.50 

!         45 

60.75 

15.5 

25.25 

25.5 

36.00 

35.5 

50.25 

45.5 

61.25 

16 

25.75 

26 

36.  75 

36 

51.00 

46 

61.50 

16.5 

26.25 

26.5 

37.  50 

36.  5 

51.50 

46.5 

62.00 

17 

26.75 

27 

38.  25 

37 

52.25 

47 

62.50 

17.5 

27.  25 

27.5 

39.00 

37.5 

53.00 

47.5 

63.00 

18 

27.75 

28 

39.  50 

38 

53.  75 

48 

63.25 

18.5 

28.25 

28.5 

40.  25 

38.5 

54.25 

48.5 

63.  75 

19 

28.75 

29 

41.00 

39 

54.  75 

49 

(M.  25 

19.5 

20.  25 

29.5 

41.75 

39.5 

55.  50 

49.5 

64.75 

209 

Section  C. — Rates  of  wages  of  railroad  employees  paid  upon  hourly  basis — Continued. 
[Rates  of  pay  in  cents  per  hour.    "  Old  rates  "  are  those  of  December,  1915.) 


Old  rate 

New  rate 

Old  rate 

New  rate    j 

Old  rate 

New  rate 

Old  rato 

New  rate 

per  hour. 

per  hour. 

per  hour. 

per  hour.     > 

per  hour. 

per  hour. 

per  hour. 

per  hour. 

50 

65.00 

68 

80.25 

86 

95.75 

104 

111.00 

50.5 

65.25 

68.5 

80.75 

86.5 

96.00 

104.  5 

111.25 

51 

•  65.  75 

69 

81.25 

87 

96.  50 

105 

111.75 

51.5 

66.25 

69.5 

81.50 

87.5 

97.00 

105.  5 

112.25 

52 

66.50 

70 

82.00 

88 

97.25 

106 

112.  75 

52.5 

67.00 

70.5 

82.  50 

88.5 

97.75 

106.5 

113.  00 

53 

67.50 

71 

83.  00 

89 

98.25 

107 

113.50 

53.5 

68.00 

71.5 

83.25 

89.5 

98.50 

107.5 

114.00 

54 

68.25 

72 

83.75 

90 

99.00 

108 

114.  25 

54.5 

68.75 

72.5 

84.25 

90.5 

99.50 

108.5 

114.  75 

55 

69.25 

73 

84.  50 

91 

99.75 

109 

115.25 

55.5 

69.75 

73.5 

85.00 

91.5 

100. 25 

109.  5 

115. 75 

56 

70.00 

74 

85.50 

92 

100.  75 

110 

116.00 

56.5 

70.  50 

74.5 

86.00 

92.5 

101. 25 

110.5 

116.  50 

57 

71.00 

75 

86.25 

93 

101.50 

111 

117.00 

57.5 

71.50 

75.5 

86.75 

93.5 

102. 00 

111.5 

117.  25 

58 

71.75 

76 

87.00 

94 

102. 50 

112 

117.  75 

58.5 

72.25 

76.5 

87.50 

94.5 

102. 75 

112.5 

118.  25 

59 

72.75 

77 

88.00 

95 

103. 25 

113 

118.  50 

59.5 

73.00 

77.5 

88.25 

95.5 

103. 75 

113.5 

119.  00 

60 

73.50 

78 

88.75 

96 

104.  25 

114 

119.  50 

60.5 

74.00 

78.5 

89.25 

96.5 

104. 50 

114.5 

119.  75 

61 

74.50 

79 

89.75 

97 

105. 00 

115 

120.  00 

61.5 

74.75 

79.5 

90.00 

97.5 

105. 50 

115.5 

120.00 

62 

75.25 

80 

90.50 

98 

106. 00 

116 

120.  00 

62.5 

75.  75 

80.5 

91.00 

98.5 

106. 25 

116.5 

120.  00 

63 

76.00 

81 

91.50 

99 

106. 75 

117 

120.00 

63.5 

76.50 

81.5 

91.75 

99.5 

107.  25 

117.5 

120.00 

64 

76.75 

82 

92.  25 

100 

107. 50 

118 

120.  00 

64.5 

77.25 

82.5 

92.75 

100.5 

108. 00 

118.5 

120.  00 

65 

77.75 

83 

93.00 

101 

108. 25 

119 

120.00 

65.5 

78.25 

83.5 

93.50 

101.5 

108. 75 

119.5 

120.00 

66 

78.50 

84 

94.00 

102 

109.  25 

120 

120.  00 

6C.5 

79.00 

84.5 

94.50 

102.5 

109. 75 

67 

79.50 

85 

94.75 

103 

110. 00 

67.5 

79.75 

85.5 

95.25 

103.5 

110. 50 

While  it  is  expected  that  the  Board  of  Railroad  Wages  and  Work- 
ing Conditions  hereinafter  created  shall  give  consideration  to  all 
questions  of  inequality  as  between  individuals  and  classes  of  em- 
ployees throughout,  sufficient  information  is  available  to  justify 
certain  conclusions  with  respect  to  the  mechanical  crafts,  and  in  the 
case  of  machinists,  boilermakers,  blacksmiths,  and  other  shop 
mechanics  who  have  been  receiving  the  same  hourly  rates,  the  in- 
creases named  in  this  order  shall  apply,  with  a  minimum  wage  of  55 
cents  per  hour. 

It  is  recognized  that  this  may  still  leave  among  shop  employees  cer- 
tain inequalities  as  to  individual  employees,  to  which  the  Board  of 
Railroad  Wages  and  Working  Conditions  will  give  prompt  con- 
sideration. 


105889°— 19- 


-14 


210 

For  common  labor  paid  by  the  hour,  the  scale  named  herein  shall 
apply,  with  the  provision,  however,  that  as  a  minimum,  2^  cents  per 
hour  will  be  added  to  the  rates  paid  per  hour,  as  of  December  31, 
1917. 

METHOD  OF  APPLYING  INCREASES  TO  HOUBLT  RATES. 

1.  Machinist  worked  in  January,  1918,  8  hours  per  day,  27  days, 
total  216  hours  straight  time. 

The  rate  of  pay  for  this  position  in  December,  1915,  was  34  cents  per 
hour ;  new  rate  under  this  order  48  cents  per  hour,  but  with  minimum 
rate  of  55  cents  per  hour  as  herein  ordered  will  receive $118.  80 

In  January,  1918,  his  rate  of  pay  was  37i  cents  per  hour,  for  216 
hours,  equals 81.  00 

Difference  1   month 37.80 

On  basis  of  working  same  amount  straight  time  each  month  for  five 

months  (Jan.  1  to  May  31) 189.00 

Also  worked  in  same  period  90  hours  overtime  at  time  and  one- 
half,  new  55  cents  minimum  rate,  or  82^  cents,  equals $74.  25 

Was  paid  56J  cents   (time  and  one-half) 1 50.63 

23. 62 

Balance  due  January  1  to  May  31,  1918 212.  62 

2.  Machinist  worked  in  January,  1918,  10  hours  per  day,  2G  days, 
total  260  hours  straight  time. 

The  rate  of  pay  for  this  position  in  1915  was  34  cents  per  hour ;  new 
rate  under  this  order,  48  cents  per  hour,  but  with  minimum  rate  of 
55  cents  per  hour  as  herein  ordered  will  receive $143.00 

In    January,    1918,    his    rate    of    pay    was    37i    cents    per    hour,    260 

hours  equals 97.  50 

Difference  1   month 45.50 

On  basis  of  working  same  amount  of  straight  time  each  month  for 

5  months  (Jan.  1  to  May  31) $227.50 

Also  worked  in  same  period  90  hours  overtime  at  pro  rata  rate, 

new  55-cent  minimum  rate,  equals $49.  50 

Was  paid  at  37i-cent  rate  pro  rata  overtime  or 33.  75 

15. 75 

Balance  due  Jan.  1  to  May  31,  1918 243.  25 

3.  Machinist  "  D  "  was  employed  in  the  same  shop  in  December, 
1915,  and  in  1918  on  the  same  class  of  work.  His  hourly  rate  in 
December,  1915,  was  35  cents  for  9  hours,  26  days  a  month.  He 
Avas  paid  for  overtime  and  Sunday  work  at  time  and  one-half.  On 
January  1,  1918,  his  hours  were  reduced  to  8  and  his  rate  increased 
to  40  cents.  The  new  hourly  rate  applicable  to  his  1915  rate,  viz: 
49^  cents  being  less  than  the  minimum  of  55  cents,  his  new  rate 
will  be  55  cents  per  hour.    In  1918,  from  January  1  to  May  31,  he 


211 

worked  234  hours  per  month  or  an  average  of  one  hour  overtime 
daily  on  the  1918  schedule.  This  for  five  months  gives  him  130 
hours  overtime.    He  has  been  paid  as  follows : 

1.040  hours  straight  time,  at  40  cents $416.00 

130  hours  overtime,  at  60  cents 78.00 

Total -194.  00 

His  back  pay  will  be  computed  as  follows : 

1.040  hoiirs  straight  time,  at  5-5  cents 572.00 

130  hours  overtime,  at  82i  cents 107.25 

Total L G79.  25 

Deduct  payment  at  1918  rates 494.  00 

Back  pay   tlue 185.  25 

and  his  future  rate  per  hour  will  be  55  cents. 

4.  In  the  case  of  employee  "  E,"  who  was  employed  in  a  shop  where 
the  rate  for  his  position  was  35  cents  per  hour  for  8  hours'  work  in 
1915,  with  time  and  one-half  for  overtime,  but  in  the  same  position 
and  same  shop  with  the  same  hours  in  1918  his  rate  is  45  cents  per 
hour :  his  earnings  in  1915  in  the  standard  208-hour  month  would  be 
$72.80  per  month,  and  he  would  be  entitled  to  the  new  hourly  rate 
of  491  cents  per  hour.  His  straight  time  and  overtime  earnings  and 
back  pay  would  be  computed  in  exactly  the  same  manner  as  machinist 
"  D."  The  principles  illustrated  will  apply  to  all  men  paid  by  the 
hour,  whatever  their  occupation  may  be. 

Section  D. — Rates  of  wages  of  railroad  employees  paid  upon  piece- 
work hosts. 

METHOD  OF   APPLYIXCx   INCREASES   TO   PIECE   RATES. 

1.  The  pieceworker  shall  receive  for  each  hour  worked,  the  same 
increase  per  hour  as  is  awarded  to  the  hourly  worker  engaged  in 
similar  employment  in  the  same  shop. 

2.  If  the  hourly  rate  has  been  increased  since  1915  to  an  amount 
greater  than  the  increase  herein  fixed,  then  the  higher  rate  shall 
prevail. 

8.  Where  there  was  no  piece  rate  for  an  item  or  operation  in  the 
piece-rate  schedule  of  1915,  adjust  the  current  price  by  such  an 
amount  as  a  similar  item  or  operation  has  been  increased  or  decreased 
since  December  31,  1915,  or  as  near  such  a  plan  as  practicable. 

4.  It  is  understood  that  the  application  of  this  order  shall  not,  in 
any  case,  operate  to  reduce  current  earnings. 


212 

0.  When  a  pieceworker  Avorks  overtime  or  undertime,  he  shall 
receive  that  proportion  of  the  increase  provided  in  the  schedule  which 
the  time  actually  vvorked  bears  to  the  normal  time  in  the  position. 

6.  Overtime  is  not  to  be  considered  solely  as  the  number  of  hours 
employed  in  excess  of  the  normal  hours  per  month  in  the  position, 
but  rather  the  time  employed  in  excess  of  the  normal  hours  per  day. 

7.  Employee  "  F  "  was  employed  under  a  piecework  schedule  in  a 
shop  where  the  basic  hourly  rate  was  35  cents  for  eight  hours,  with 
time  and  one-half  for  overtime.  This  rate  under  the  plan  illus- 
trated above  will  be  increased  to  49|  cents  per  hour.  Difference, 
1-i-J-  cents. 

Regardless  of  the  schedule  of  piece  rates  under  which  he  is  paid, 
under  this  order  "  F ""  will  be  entitled  to  receive  14^  cents  per  hour  in 
addition  to  his  piecework  earnings  for  every  hour  Avorked  in  1918 
unless  the  hourly  rate  shall  in  the  interim  have  been  raised  and  a 
l^roportionate  increase  made  in  the  piecework  schedule. 

For  example:  Assume  that  "  F ''  made  $90  in  December,  1915,  at 
his  piecework.  At  the  hourly  rate  he  Avould  have  earned  only  $72.80, 
and  his  hourly  rate  must  therefore  be  increased  to  49^  cents. 

If,  in  January,  1918,  he  has  attained  sufficient  skill  to  earn  $100  on 
the  same  piecework  schedule,  he  Avill  be  entitled  to  receive,  never- 
theless, 14^  cents  per  hour  for  each  hour  of  straight  time  worked, 
and  for  each  hour  of  overtime,  212  cents  additional  (if  time  and 
one-half  for  overtime  is  in  effect). 

Assume  that  in  the  five  months,  January  1  to  May  31,  "  F ''  has 
worked  1,040  hours  straight  time,  and  130  hours  overtime,  and  has,  at 
his  piecework  schedule  earned  $500.  He  will  be  entitled,  neverthe- 
less, to  receive  as  back  pay  the  folloAving  amount : 

1,040  hours  at  14i  cents  per  hour if  150.  80 

130  hoxirs  at  21f  cents  per  hour 28.28 

Total 179.08 

But  if  in  January,  1918,  the  basic  hourly  rate  had  been  increased 
to  50  cents,  and  this  increase  had  been  correspondingly  expressed  in 
his  piecework  schedule,  he  would  be  entitled  to  no  back  pay.  If, 
on  the  other  hand,  the  hourly  rate  had  been  increased  from  35  cents  in 
1915  to  45  on  January  1,  1918,  and  this  increase  had  been  expressed 
in  a  corresponding  increase  in  the  piecework  schedule,  then  "  F " 
would  be  entitled  to  receive  back  pay  at  4^  cents  per  hour  for  straight 
time  and  6f  cents  per  hour  overtime. 

If  the  practice  in  the  shop,  however,  had  been  to  pay  pro  rata  for 
overtime,  then  the  rate  for  such  overtime  since  January  1,  1918, 
Avould  be  pro  rata  at  4^  cents,  or  14^  cents  per  hour,  according  to 
whether  piece  rates  had  been  or  had  not  been  increased. 

8.  Employee's  December,  1915,  rate  was  38^  cents;  which  rate 
in  this  order  for  8  hours  per  day  entitles  him  to  54^  cents  per  hour. 


213 

His  basic  rate  had.  by  January  1.  1918,  been  raised  to  42^  cents  per 
liour.  PieceAvork  rates  had  not  been  raised  in  the  interval.  This 
man  earned  in  ii08  hours  $100.  He  is  entitled  to  a  raise  of  11!^  cents 
per  hour. 

11 J  t-euts  X  208: 

1  month $24.44 

n  months - 122.  20 

The  following  rates  will  apply  "per  day"  or  its  established  equiva- 
lent in  "miles": 


Section  E. — Rates  of  wages  of  railroad  employees  paid  iipon  mileage  basis. 

PASSENGER  ENGINEERS. 


Old. 

New. 

.         Old. 

New. 

Old. 

New. 

Old. 

New. 

$4.10 

$4.  56 

$4.53 

$5.04 

$4.95 

$5.51 

'       $5. 55 

$6. 17 

4.15 

4.62 

4.55 

5.06 

5.00 

5.56 

I        5.65 

6.29 

4.20 

4.67 

4.60 

5.12 

5.05 

5.62 

5.90 

6.56 

4.25 

4.73 

4.65 

5.17 

5.13 

5.71 

6.00 

6.68 

4.30 

4.78 

4.70 

5.23  j 

5. 15  , 

5.73 

6.05 

6.73 

4.35 

4.84 

4.75 

5.28 

5.28 

5.87 

6.25 

6.95 

4.40 

4.90 

4.78 

5.32  ! 

5.35 

5.95 

6.30 

7.01 

4.45 

4.95 

4.80 

5.34  1 

5.40 

6.01 

6.50 

7.23 

4.50 

5.01 

4.90 

5.45  ; 

5.53 

6.15 

7.00 

7.79 

$1.91 
2.25 
2.33 
2.34 
2.40 
2.42 
2!  45 
2.50 
2.51 
2.55 


$2.46 
2.90 
3.00 
3.01 


09 
12 
15 
22 

23 


$2.60 
2.62 
2.65 
2.69 
2.70 
2.75 
2.76 
2.78 
2.80 


$3.35 
3.37 
3.41 
3.46 
3.48 
3.64 
3.55 
3.58 
3.61 


$2.84 
2.85 
2.90 
2.95 
3.00 
3.05 
3.10 
3.15 
3.20 


$3.66 
3.67 
3.73 
3.80 
3.86 
3.93 
3.99 
4.06 
4.12 


$3.  30 
3.35 
3.40 
3.45 
3.60 
3.75 
4.00 
4.15 
4.25 


PASSENGER  TRAINMEN. 


$4.25 
4.31 
4.38 
4.44 
4.64 
4.83 
5.15 
5.34 
5.47 


PASSENGER  CONDUCTORS. 

$2.50 
2.60 

$2.89 
3.00 

$2.68 
2.75 

$3. 10  I 
3.18  ; 

•  1 

$2.90 

$3.35  ! 

! 
1 

$3.47 

$4.01 

PASSENGER  BAGGAGEMEN. 

$1.40 
1.45 

$1.94 
2.00 

$1.49 
1.54 

$2.06 
2.13 

$1.61 
1.65 

1 
$2.23  ' 
2.28 

$1.70 
2.00 

$2.35 

2.77 

$1.35 
1.43 
1.46 

$1.88  i 
1.99    i 
2.04    ! 

$1.47 
1.49 

$2.  05 
2.08 

$1.  50 
1.55 

$2.09 
2.16 

$1.60 
1.87 

$2.23 
2.61 

214 


Section  E. — Rates  of  wages  of  railroad  employees  paid  upon  mileage  basis — Con. 
FREIGHT  ENGINEERS. 


Old. 

New. 

Old. 

New. 

Old. 

New. 

Old. 

New. 

$4.25 

$4.91 

$5.05 

15.83 

$5.  40 

$6.24 

$5.  90 

$G.  81 

4.50 

.  5.20 

5.06 

5.84 

5.43 

6.27 

5.95 

G.87 

4.70 

5.43 

5.10 

5.89 

5.45 

6.29  1 

5.995 

G.  925 

4.75 

5.49 

5.13 

5.93 

5.50 

6.35 

6.00 

6.93 

4.80 

5.54 

5.145 

5.95 

5.55 

6.41 

6.10 

7.05 

4.85 

5.  GO 

5.15 

5.95 

5.  555 

6.415 

6.25 

7.22 

4.86 

5.  Gl 

5.17 

5.97 

5.  GO 

6.47 

6.50 

7.51 

4.87 

5.62 

5.20 

6.01 

5.61 

6.48 

6.75 

7.80 

4.88 

5.64 

5.25 

6.06 

5.65 

6.53 

6.80 

7.85 

4.89 

5.65 

5.28 

6.10 

5.  665 

6.545 

6.85 

7.91 

4.90 

5.66 

5.30 

6.12 

5.70 

6.58 

6.90 

7.97 

4.95 

5.72 

5.33 

6.16 

5.  75 

6.64 

6.95 

8.03 

4.97 

5.74 

5.35 

6.18 

5.83 

6.73 

'  7.00 

8.09 

5.00 

5.78 

5.39 

6.23 

5.85 

6.76 

7.25 

8.37 

FREIGHT  FIREMEN. 


$2.25 

$3.02 

$2.93 

$3.93 

$3.23 

$4.34 

$3.  75 

$5.03 

2.36 

3.17 

2.95 

3.96 

3.245 

4.355 

3.80. 

5.10 

2.45 

3.29 

3.00 

4.03 

3.25 

4.36 

3.90 

5.24 

2.47 

3.32 

3.01 

4.04  j 

3.30 

4.43 

3.905 

5.  245 

2.50 

3.36 

3.03 

4.07 

3.35 

4.50 

3.95 

5.30 

2.56 

3.44 

i    3.04 

4.08 

3.40 

4.56 

4.00 

5.37 

2.59 

3.48 

3.05 

4.09  i 

3.45 

4.63 

4.05 

5.44 

2.60 

3.49 

3.07 

4.12 

3.465 

4.65 

4.10 

5.50 

2.70 

3.62 

3.10 

4.16 

3.50 

4.70 

4. 125 

5.  535 

2.75 

3.69 

3.13 

4.20 

3.55 

4.77 

4.18 

5.61 

2.78 

3.73 

3.15 

4.23 

3.57 

4.79 

4.25 

5.71 

2.81 

3.77 

3.16 

4.24  I 

3.60 

4.83 

4.30 

5.77 

2.85 

3.83 

3.19 

4.28  ! 

3.63 

4.87 

4.50 

6.04 

2.87 

3.85 

3.20 

4.30  ' 

3.65 

4.90 

4.55 

G.  11 

2.90 

3.89 

3.22 

4.32 

3.70 

4.97 

FREIGHT  CONDUCTORS. 


$2.31 

$2.78  i 

$4.24 

$5.11 

$4.54 

$5.  47 

$4.  88 

$5.88 

2.90 

3.49 

4.2b 

5.12 

4.55 

5.48 

4.96 

5.98 

3.46 

4.17 

4.27 

5.15 

4.63 

5.58 

5.04 

6.07 

3.63 

4.37  I 

4.38 

5.28 

4.64 

5.59 

5.08 

6.12 

3.85 

4.64  ! 

4.40 

5.30 

4.  66 

5.62 

5.10 

6. 15 

3.90 

4.70 

4.42 

5.33 

4.74 

5.71 

5.14 

6. 19 

3.975 

4.79 

4.43 

5.34 

4.77 

5.75 

5.21 

6.28 

4.00 

4.82 

4.48 

5.40 

4.80 

5.78 

5.67 

6.83 

4.10 

4.94 

4.50 

5.42 

4.83 

5.82 

5.69 

6.86 

4.13 

4.98 

4.51 

5.43 

4.84 

5.83 

6.12 

7.37 

4. 165 

5.02 

4.52 

5.45 

4.86 

5.86 

6.45 

7.77 

4.18 

5.04 

4.53 

5.46 

4.87 

5.87 

7.09 

8.54 

215 


Section  E.— Rates  of  loages  of  milroad  emploijees  pnid  upon  mileage  basis — Con. 
FREIGHT  BRAKEMEN  AND  FLAGMEN. 


Old. 

New. 

Old. 

New. 

Old. 

New. 

Old. 

New. 

$1.60 

$2.23 

$2.70 

$3.77 

$3.02 

$4.21 

$3.48 

$4.85 

1.89 

2.64 

2.72 

3.79 

3.10 

4.32 

3.60 

5.02 

1.93 

2.69 

2.75 

3.84 

3.13 

4.37 

3.62 

5.05 

2.14 

2.99 

2.78 

3.88 

3.14 

4.38 

3.66 

5.11 

2.25 

3.14 

2.80 

3.91 

3.15 

4.39 

3.707 

5.17 

2.33 

3.25 

2.82 

3.93 

3.20 

4.46 

3.71 

5.18 

2.40 

3.35 

2.83 

3.95 

3.21 

4.48 

3.93 

5.48 

2.42 

3.38 

2.85 

3.98 

3.25 

4.53 

4.24 

5.91 

2.48 

3.46 

2.88 

4.02 

3.29 

4.59 

4.26 

5.94 

2.60 

3.63 

2.95 

4.12 

3.33 

4.65 

4.62 

6.44 

2.62 

3.65 

2.98 

4.16 

3.41 

4.76 

4.96 

6.92 

2.  65 

3.70 

2.99 

4.17 

3.46 

4.83 

5.37 

7.49 

2.67 

3.72 

3.00 

4.19 

"  Old  "  rates  are  those  of  December,  1915. 

If  there  were  mileage  rates  in  effect  in  December,  1915,  which  are 
not  included  in  the  above  tables,  they  shall  be  increased  in  accord- 
ance with  the  following  percentages: 

Per  cent. 

Road  passenger  engineers  and  motormen Hi 

Road  passenger  firemen  and  helpers 28? 

Road  passenger  conductors 15J 

Road  passenger  baggagemen 38:^ 

Road  passenger  brakemeu  and  flagmen 39* 

Road  freight  engineers  and  motormen 15^ 

Road  freight  firemen  and  helpers 34^ 

Road   freight   conductors 20^ 

Road  freight  brakemen  and  flagmen 39* 

JNIETHOD  or  APPLYING  INCREASES  TO  IVIILEAGE  BASIS. 

1.  Rates  for  overtime  as  now  in  effect,  whether  providing  for 
pro  rata  basis  or  in  excess  thereof,  shall  be  increased  by  same  per- 
centage as  straight  time  rates. 

2.  Miles  run,  in  excess  of  the  established  equivalent  of  a  day  (or 
of  a  month  where  such  basis  prevails)  shall  be  paid  for  pro  rata. 

3.  If  any  increase  has  been  made  in  the  mileage  rates  of  employees 
paid  on  that  basis  in  December,  1915,  it  will  be  understood  that  the 
per  cent  of  increase  allowed  by  this  order  is  inclusive  of  such  interim 
increases  and  that  the  new  rate  is  computed  from  the  base  rates  of 
December,  1915. 

4.  Example  (1)  :  Engineer  "  G,"  passenger  service,  received  $1.25 
per  day  of  one  hundred  miles  in  10  hours  in  December,  1915.  Ac- 
cording to  this  plan,  although  in  1918  this  rate  was  $4.25  per  hundred 
miles  in  8  hours,  the  rate  will  be  increased  11^  per  cent  to  $4.73  per 
100  miles  ($4.7281  equalized  as  $4.73).  He  will  be  entitled  to  back 
pay  for  every  100  miles  run  at  the  rate  of  48  cents  per  100  miles. 


216 


Example  (2)  : 


Conductor,  through  freight : 

2,950  miles  at  4  cents,  at  new  rate,  would  entitle  him  to  4.82  cents, 

or    $142.  19 

He  was  paid ; IIS.  00 

Leaving  to  he  paid 24. 19 

He  made  26  hours  and  10  minutes  overtime,  equivalent,  on 
basis  of  122  miles  per  hour,  to  327  miles,  which,  at  the 

increased  rate  of  4.82  cents  per  mile,  entitles  him  to $15.  76 

Was  paid,  at  4  cents  per  mile 13.08 

A   difference  of 2.  G8 

One    month 20.  87 

Five    months 134. 35 

This  principle  will  apply  to  all  employees  of  the  train  and  engine 
service  who  are  paid  on  the  mileage  basis.  There  are  some  railroads 
in  the  United  States  upon  which  men  in  the  train  and  engine  service 
are  paid  on  a  monthly  wage.  Such  employees  Avill  be  entitled  to  the 
increased  rates  named  in  Article  2,  section  A. 

5.  Since  the  application  of  the  increases  hereby  granted  will  tend 
in  individual  cases  to  give  increases  greater  than  is  appropriate  or 
necessary  to  those  train  and  engine  men  who  make  abnormal  amounts 
of  mileage  and  who,  therefore,  make  already  abnormally  high 
monthly  earnings,  the  officials  of  each  railroad  shall  take  up  with  the 
respective  committees  of  train  and  engine  men  the  limitation  of 
mileage  made  per  month  by  emploj^ees  paid  upon  a  mileage  basis, 
so  as  to  prevent  employees  now  making  such  abnormal  mileage 
profiting  by  the  wage  increases  herein  fixed  greatly  in  excess  of  em- 
ployees habitually  making  a  normal  amount  of  mileage.  It  shall  be 
understood  that  any  such  limitation  of  mileage  so  arrived  at  shall 
not  preclude  the  officials  of  a  railroad  from  requiring  a  train  or 
engine  man  to  make  mileage  in  excess  of  this  limitation  when  the 
necessities  of  the  service  require  it.  The  officials  of  each  railroad 
will  report  to  the  Regional  Director  such  arrangements  agreed  upon 
and  any  cases  of  failure  to  reach  such  agreements. 

Section  F. — General  rules  for  application  of  wage  increases. 

1.  In  the  application  of  the  scale  the  wage  runs  with  the  place. 
If  in  the  past  two  years  an  employee  has  been  promoted,  his  new 
wage  is  based  upon  the  rate  of  increase  applicable  to  the  new  sched- 
ule governing  the  position  to  which  he  has  been  promoted. 

2.  In  applying  these  percentages  to  the  hourly,  daily,  monthly, 
or  mileage  rates  for  December,  1915.  in  order  to  determine  the  rates 


217 

to  he  applied,  beginning  January  1,  1918,  each  decimal  fraction  over 
1  per  cent  shall  be  equalized  as  follows : 

Less  than  one-fourth  of  1  per  cent,  as  one- fourth  of  1  per  cent. 

Over  one-fourth  of  1  per  cent,  but  less  than  one-half  of  1  per  cent, 
as  one-half  of  1  per  cent. 

Over  one-half  of  1  per  cent,  but  less  than  three-fourths  of  1  per 
cent,  as  three-fourths  of  1  per  cent. 

Over  three-fourths  of  1  per  cent,  as  1  per  cent. 

3.  These  increases  are  to  be  applied  to  the  rates  of  wages  in  effect 
on  December  31,  1915.    They  do  not  represent  a  net  increase  at  this 

time. 

4.  As  to  the  employee  who  may  have  been  promoted  since  Decem- 
ber 31,  1915,  his  increase  will  be  based  upon  the  rate  of  his  present 
position  as  of  December  31,  1915. 

5.  As  to  the  employee  who  has  been  reduced  in  position,  his  increase 
will  be  based  upon  the  rate  of  his  present  position  as  of  December 
31,  1915. 

6.  The  new  rates  named  herein,  where  they  are  higher  than  the 
rates  in  effect  on  January  1,  1918,  will  be  applied  to  the  occupants  of 
positions  that  carried  the  rates  in  December,  1915. 

7.  In  those  cases  where  increases  have  been  made  by  the  railroads 
since  December  31,  1915,  in  excess  of  the  amounts  herein  ordered, 
present  wages  shall  apply,  for  in  no  instance  shall  the  application 
hereof  operate  to  reduce  present  rates  of  pay. 

8.  Reductions  in  hours  between  December  31,  1915,  and  January 
1,  1918,  are  not  to  be  regarded  as  increases  in  pay. 

9.  The  wage  increases  provided  for  herein  shall  be  effective  as 
of  January  1,  1918,  and  are  to  be  paid  according  to  the  time  served 
to  all  who  were  then  in  the  railroad  service  or  who  have  come  into 
such  service  since  and  remained  therein.  The  proper  ratable  amount 
shall  also  be  paid  to  those  who  have  been  for  any  reason  since  January 
1,  1918,  dismissed  from  the  service,  but  shall  not  be  paid  to  those 
who  have  left  it  voluntarily.  Men  who  have  left  the  railroads  to 
enter  the  Army  or  Navy  shall  be  entitled  to  the  pro  rata  increases 
accruing  on  their  wages  up  to  the  time  they  left,  and  the  same  nde 
shall  apply  to  those  who  have  passed  from  one  branch  of  the  railroad 
service  or  from  one  road  to  another. 

10.  This  order  applies  to  foremen,  chief  clerks,  and  others  em- 
ployed in  a  supervisory  capacity,  as  well  as  to  their  subordinates. 

11.  This  order  shall  be  construed  to  apply  to  employees  of  rail- 
roads operating  ferries,  tugboats,  lighters,  barges,  and  any  other 
floating  equipment  operated  as  terminal  or  transfer  facilities,  but 
shall  not  be  construed  as  applying  to  railroad  employees  on  cargo 
and  passenger  carrying  equipment  on  lakes,  rivers,  or  in  coastwise 
or  ocean  traffic. 


218 

12.  The  provisions  of  this  order  will  not  apply  in  cases  where 
amounts  less  than  $30  per  month  are  paid  to  individuals  for  special 
service  which  takes  only  a  portion  of  their  time  from  outside  employ- 
ment or  business. 

13.  Office  boys,  messengers,  chore  boys,  and  similar  positions  filled 
by  employees  who  are  under  18  years  of  age  will  receive  the  following 
increase  per  month : 

Twenty  dollars  increase  per  month  where  December,  1915,  rate  was 
from  $30  to  $45  per  month. 

Fifteen  dollars  increase  per  month  where  December,  1915,  rate  was 
from  $20  to  $30  per  month. 

Ten  dollars  increase  per  month  where  December,  1915,  rate  was 
less  than  $20  per  month. 

Article  III. — Rules  Governing  Conditions  or  Employment. 

Section  A.^ — The  haste  eight-hour  day. 

The  principal  of  the  basic  eight-hour  day  is  hereby  recognized. 
Where  employees  are  paid  upon  a  daily  or  monthly  basis,  the  new 
compensation  herein  established  will  apply  to  the  number  of  hours 
which  have  heretofore  constituted  the  actual  day's  work.  For  ex- 
ample, where  an  actual  day's  work  has  been  10  hours,  the  new  com- 
pensation will  cover  the  eight  basic  hours  and  two  hours  overtime. 
Additional  overtime  will  be  paid  pro  rata. 

METHOD    or    APPLYING    BASIC    EIGHT-HOUR-DAY    RULES. 

1.  Position  which  in  December,  1915,  paid  $2  per  9-lioiir  day : 

Old  rate,  $2  per  day. 

New  rate,  $2.51  for  8-hour  basic  day. 

Overtime,  31.4  cents  per  hour. 

New  rate,  $2.83  for  9-hour  service ;  83  cents  increase. 

2.  Position  which  in  December,  1915,  paid  $2.40  per  10-hour  day. 

Old  rate,  $2.40  per  day. 

New  rate,  $2.70  for  8-hour  basic  day. 

Overtime,  $0.68—2  hours,  at  34  cents  per  hour. 

New  rate,  $3.38  for  10-hour  service ;  98  cents  increase. 

3.  Position  which  in  December.  1915,  paid  $75  per  month,  working  10  hours  per 

day  for  26  working  days: 
Old  rate,  $75  per  month. 
New  rate,  $84.60  per  month  basic  8-hour  day. 
Overtime,  $21.15—52  hours,  at  40.67  cents  per  hour. 
New  rate,  $105.75  for  same  service ;  increase,  $30.75. 

4.  Position  which  in  December,  1915,  paid  $100  per  month,  w.irkiug  11  hours 

per  day  for  31  working  days: 
Old  rate,  $100  per  month. 
New  rate,  .$95.82  per  month  basic  S-hour  day. 
Overtime.  $35.93—93  hours,  at  38.64  cents  per  hour. 
New  rate,  $131.75  for  same  service;  increase,  $31.75. 


219 

Sectiox  B. — Rate8  of  pay  for  overtime. 

This  order  shall  not  affect  any  existing  agreements  or  practices  for 
the  payment  of  higher  rates  of  pay  for  time  worked  in  excess  of  any 
standard  day.  Time  worked  in  excess  of  the  basic  eight-hour  day 
hereby  established  will,  when  there  is  no  existing  agreement  or  prac- 
tice more  favorable  to  the  employee,  be  paid  on  a  prorata  basis,  as 
indicated  in  section  A  of  this  article. 

Section  C. — No  reduction  in  total  increase. 

Pending  consideration  by  the  Board  of  Railroad  Wages  and  Work- 
ing Conditions  hereinafter  provided  for,  no  reduction  in  the  actual 
hours  constituting  a  day's  work  shall  operate  to  deprive  any  em- 
ployee, paid  by  the  day  or  month,  of  the  total  increase  in  pay  granted 
him  by  this  order. 

Article  IV. — Payments  for  Back  Time. 

'  Each  railroad  will,  in  payments  made  to  eiiiployees  on  and  after 
June  1,  1918,  include  these  increases  therein. 

As  promptly  as  possible,  the  amount  due  in  back  pay  from  Jan- 
uary 1,  1918,  in  accordance  with  the  provision  of  this  order,  will 
be  computed  and  payment  made  to  employees  separately  from  the 
regular  monthly  payments,  so  that  employees  will  know  the  exact 
amount  of  these  back  payments. 

Recognizing  the  clerical  work  necessary  to  make  these  computa- 
tions for  back  pay  and  the  probable  delay  before  the  entire  period 
can  be  covered,  each  month,  beginning  with  January,  shall  be  com- 
puted as  soon  as  practicable  and,  as  soon  as  completed,  payment 
shall  be  made. 

Article  V. — Employment  of  Women. 

When  AYomen  are  employed,  their  working  conditions  must  be 
healthful  and  fitted  to  their  needs.  The  laws  enacted  for  the  govern- 
ment of  their  employment  must  be  observed  and  their  pay,  when 
they  do  the  same  class  of  work  as  men,  shall  be  the  same  as  that 
of  men. 

Article  VI. — Colored  Firemen,  Trainmen,  and  Switchmen. 

Effective  June  1,  1918,  colored  men  employed  as  firemen,  train- 
men, and  switchmen  shall  be  paid  the  same  rates  of  wages  as  are 
paid  white  men  in  the  same  capacities. 

Back  pay  for  period  January  1,  1918,  to  May  31,  1918,  will  be 
based  only  upon  the  increases  provided  in  Article  II  of  this  order  for 
such  positions.  Back  payments  will  not  apply  to  the  further  in- 
creased rate  made  effective  by  this  article. 


220 
Article  VII. — Board  or  Railroad  Wages  and  Working  Conditions. 

There  is  hereby  created  a  Board  of  Railroad  Wages  and  Working 
Conditions  which  shall  consist  of  the  following  members:  J.  J. 
Dermod}^,  F.  F.  Gaines,  C.  E.  Lindsey,  W.  E.  Morse,  G.  H.  Sines, 
A.  O.  Wharton. 

This  board  shall  at  once  establish  an  office  at  Washington,  D.  C, 
and  meet  for  organization  and  elect  a  chairman  and  vice  chairman, 
one  of  whom  shall  preside  at  meetings  of  the  board. 

It  shall  be  the  duty  of  the  board  to  hear  and  investigate  matters 
presented  by  railroad  employees  or  their  representatives  affecting — • 

1.  Inequalities  as  to  wages  and  working  conditions  whether  as  to 
individual  employees  or  classes  of  employees. 

5.  Conditions  arising  from  competition  with  employees  in  other 
industries. 

3.  Rules  and  working  conditions  for  the  several  classes  of  em- 
ployees, either  for  the  country  as  a  whole  or  for  different  parts  of 
the  country. 

The  board  shall  also  hear  and  investigate  other  matters  affecting 
wages  and  conditions  of  employment  referred  to  it  by  the  Director 
General. 

This  board  shall  be  solely  an  advisory  body  and  shall  submit  its 
recommendations  to  the  Director  General  for  his  determination. 

Article  VIII. — Interpretations  or  this  Order. 

Railway  Board  of  Adjustment  No.  1  is  authorized  by  article  0  of 
General  Order  No.  13  to  perform  the  following  duty : 

Wages  and  hours,  when  fixed  by  the  Director  General,  shall  be  incorporated 
into  existing  agreements  on  the  several  railroads,  and  should  differences  arise 
between  the  management  and  the  employees  of  any  of  the  railroads  as  to  such 
incorporation,  such  questions  of  difference  shall  be  decided  by  the  Railway 
Board  of  Adjustment  No.  1,  when  properly  presented,  subject  always  to  review 
by  the  Director  General. 

In  addition  to  the  foregoing,  other  questions  arising  as  to  the  in- 
tent or  application  of  this  order  in  respect  to  the  classes  of  employees 
within  the  scope  of  Railway  Board  of  Adjustment  No.  1  shall  be 
submitted  to  such  board,  which  board  shall  investigate  and  report  its 
recommendations  to  the  Director  Genera]. 

Similar  authority  may  be  conferred  on  any  additional  Raihvay 
Board  of  Adjustment  hereafter  created. 

Decisions  shall  not  be  rendered  by  such  boards  until  after  approval 
by  the  Director  General. 

Prior  to  the  creation  of  additional  Railway  Boards  of  Adjustment 
to  deal  with  questions  as  to  the  intent  or  application  of  this  order  as 
it  affects  any  other  class  of  employees,  such  questions,  with  respect  to 


221 

such  employees,  shall  be  presented  to  the  Director  of  the  Division  of 
Labor,  United  States  Railroad  Administration,  Washington,  D.  C. 

W.  G.  ^IcAdoo, 
Director  General  of  Railroads. 


Supplement  No.  1  to  General  Order  No.  27. 

Washington,  June  10^  1918. 
The  following  will  be  added  as  general  rules  to  section  F,  Ar- 
ticle II : 

14.  For  positions  created  smce  December,  1915,  the  salaries  will 
be  readjusted  so  as  to  conform  to  the  basis  established  in  General 
Order  No.  27,  for  positions  of  similar  scope  or  responsibility. 

15.  "\Miere  wages  were  increased  through  arbitration  or  other 
general  negotiations,  which  cases  were  definitely  closed  out  prior  to 
December  1,  1915,  but  which  for  any  reason  were  not  put  into  effect 
until  after  January  1.  1916,  the  increases  fixed  by  General  Order 
No.  27  will  be  applied  to  such  basis  of  wages  as  if  they  were  in  effect 
in  December,  1915. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Supplement  No.  2  to  General  Order  No.  27. 

Washington,  July  J,  1918. 
The  terms  and  conditions  of  the  above  o'rder  will  apply  to  the 
Pullman  Company  Operating  Department,  except  that  on  account 
of  the  peculiar  character  of  the  employment  of  conductors,  porters, 
and  maids,  in  that  provision  is  made  for  rest  and  sleep  while  actually 
on  duty,  it  is  impracticable  to  apply  a  basic  eight -hour  day  to  such 
service.  It  is  therefore  ordered  that  with  respect  to  conductors, 
porters,  and  maids,  the  increases  shall  be  upon  the  basis  shown  in 
Section  A  of  Article  Two  relative  to  "  monthly  wages  " ;  but  Article 
Three  relative  to  basic  eight-hour  day  will  not  be  applicable  thereto. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 

Supplement  No.  3  to  General  Order  No.  27. 

Washington,  July  8,  1918. 
The  following  raihoads  are  hereby  added  to  and  made  a  part  of 
Article  I  of  General  Order  No.  27: 


A. 


Abilene  &  Southern. 
Ahnapee  &  Western  Ry. 
Akron  &  Barberton  Belt  R.  R. 


Akron,  Union  Passenger  Depot  Co. 
Albany  Railroad  Bridge  Co. 
Allegheny  Terminal  Co. 
AUentown  Terminal  R.  R. 
Alton  &  Southern  Ry. 


222 


Arkansas  Central  R.  R.  Co. 
Arkansas  &  IMemphis  Ry.  Bridge  &  Ter- 
minal Co. 
Arkansas  Western  Ry.  Co. 
Arminius  Branch. 
Asheville  &  Craggy  Mountain  Ry. 
Asheville  &  Southern  Ry. 
Ashland  Coal  &  Iron  Ry. 
Atchison  &  Eastern  Bridge  Co. 
Atchison  Union  Depot  &  R.  R.  Co. 
Atlantic  &  Yadkin  Ry. 

B. 

Baltimore  &  Ohio  Chicago  Terminal  R.  R. 

Baltimore  &  Sparrows  Point  R.  R. 

Baring  Cross  Bridge  Co. 

Barre  &  Chelsea  R.  R. 

Bath  &  Hammondsport  R.  R. 

Battle  Creek  &  Sturgis  R.  R. 

Bay  City  Belt  Line  R.  R. 

Bay  City  Terminal  Co. 

Beaumont  &  Great  Northern  R.  R. 

Beaumont,  Sour  Lake  &  Western. 

Beaumont  Wharf  &  Terminal  Co. 

Bellingham  &  Northern  Ry. 

Belt  Ry.  of  Chicago. 

Bethel  Granite  Ry. 

Big  Fork  &  International  Falls  Ry. 

Blue  Ridge  Ry. 

Boonville,  St.  Louis  &  Southern  Ry. 

Boston  Terminal  Co. 

Bowling  Green  R.  R. 

Brandon,  Devils  Lake  &  Southern  Ry. 

Brooklyn  Eastern  District  Terminal  R.  R. 

Brownwood  North  &  South  Ry.  Co. 

Buffalo  Creek  R.  R. 

Buffalo  Union  Terminal  R.  R. 

Butte,  Anaconda  &  Pacific  Ry.  Co. 


Cairo  &  Thebes  R.  R. 

Calumet  Western  Ry. 

Camas  Prairie  R.  R. 

Can.  Sou.  Bridge  Co. 

Can.  Southern  R.  R. 

Carolina  &  Northwestern  Ry. 

Carolina  &  Tennessee  Southern  Ry. 

Centralia  Eastern  R.  R. 

Central  Indiana. 

Central  Terminal  Ry. 

Central  Union  Depot  of  Cincinnati,  Ohio. 

Cherry  Tree  &  Dixon\"il]e  R.  R. 

Chesapeake  &  Ohio  Northern  Rj'. 

Chesapeake  &  Ohio  Ry.  of  Indiana. 


Chicago  Heights  Terminal  Transfer  R.  R. 

Chicago  Junction  Ry. 

Chicago,   Kalamazoo   &,   Saginaw  R.    R. 

(controlled  by  M.  C.  &  N.  Y.  C.  R.  R.). 
Chicago,    Kalamazoo   &  Saginaw  R.   R. 

(operated  by  Grand  Trunk  R.  R.). 
Chicago  &  Kalamazoo  Terminal  Ry. 
Chicago,  Milwaukee  &  Gary  R.  R. 
Chicago  Pdver  &  Indiana. 
Chicago  Union  Station  Co. 
Chicago  &  Western  Indiana  R.  R. 
Cincinnati,     Burnside     &     Cumberland 

River  Ry. 
Cincinnati  &  Dayton  R.  R. 
The  Cincinnati  Inter-Terminal  R.  R. 
Cincinnati,  Lebanon  &  Northern  Ry. 
Cincinnati,  Saginaw  &  Mackinaw  R.  R. 
Coal  River  Ry. 

Coeur  D'Alene  &  Pend  Oreille  Ry. 
Colorado  Springs  &  Cripple  Creek  Dist. 

Ry. 

Columbus,  Findlay  &  Northern  R.  R. 

Connecticut  River  R.  R. 

Connecting  Terminal  R.  R. 

Copper  Range  R.  R. 

The  Covington  &  Cincinnati  Elevated  R. 

R.  &  Transfer  &  Bridge  Co. 
Cumberland  &  Penna.  R.  R. 
Cumberland  Ry. 

D. 

Dallas  Terminal  Ry.  &  Union  Depot  Co. 

Danville  &  Western  Ry. 

Davenport,  Rock  Island  &  Northwestern 

Ry.  Co. 
Dayton  &  Union  R.  R. 
Dayton  Union  Ry. 
Deep  Creek  R.  R. 
Delta  Southern  Ry. 
Denison  &  Pacific  Suburban  Ry.  Co. 
Denver  Union  Terminal  Ry. 
Des  Moines  Union  Ry. 
Des  Moines  Western  Ry. 
Detroit,  Bay  City  &  Western  Ry. 
Detroit  &  Huron  Ry. 
Detroit  Manufacturers  R.  R. 
Detroit  River  Tunnel  Co. 
Detroit  Terminal  Ry.  &  Transportation 

Co. 
Detroit  Terminal  R.  R. 
Detroit,  Toledo  &  Milwaukee  R.  R. 
Direct  Navigation  Co. 
Dover  &  Rockaway  R.  R. 
Duluth  &  Superior  Bridge  R.  R. 


223 


Duluth  Terminal  R.  R. 

Dululh  Union  Depot  &  Transfer  Co. 

Dunleith  &  Dubuque  Bridge  Co. 

E. 

Easton  &  Western  R.  R. 

East.  St.  Louis  Belt  R.  R. 

East  St.  Louis  &  Carondelet  Ry. 

East  St.  Louis  Connecting  Ry. 

East  St.  Louis  National  Stock  Yards  Co.— 

East  St.  Louis. 
East  St.  Louis  &  Suburban. 
Edgewater  Connecting  Ry. 
Edgewater  Terminal  R.  R. 
Elk  Horn  &  Beaver  Valley  Ry. 
Englewood  Connecting  Ry. 
Ensley  Southern  Ry. 
Erie  Terminals  R.  R.  Co. 
Escanaba  &  Lake  Superior  R.  R. 
Evans\dlle  &  Indianapolis  R.  R. 

F. 

Farmer's  Grain  &  Shipping  Co.'s  R.  R. 

Fort  Dodge,  Des  Moines  &  Southern  R.  R. 

Fort  Smith  Suburban  R.  R. 

Fort  Smith  &  Van  Buren  R.  R. 

Fort  Street  Union  Depot  Co. 

Fort  Worth  Belt  R.  R. 

Fort  Worth  Union  Passenger  Station  Co. 

G. 

Galatin  Valley  R.  R. 
Galveston,  Houston  &  Henderson  R.  R. 
Gauley  &  Meadow  River  Ry. 
Gilmore  &  Pittsburg  R.  R. 
Grand  Canyon  Railway  Co. 
Grand  Rapids  Terminal  Co.  ■ 
Grand  Trunk  Junction  Ry. 
Grand  Trunk  ]\Iilwaukee  Car  Ferry  Co. 
Granite  City  &  Madison  Belt  Line  R.  R. 
Gray's  Point  Terminal  Ry. 
Great  Falls  &  Teton  County  Ry. 
Great  Northern  Terminal  Co. 
Green  Bay  &  Western  R.  R. 
■  Greenwich  &  Johnsonville  R.  R. 

H. 

Hamilton  Belt  Ry. 

Hannibal  Union  Depot  Co. 

Harriman  &  Northeastern  R.  R. 

Hartwell  Ry. 

Hawkins\-ille  &  Florida  Southern  Ry. 

Helena  Terminal. 

Hibernia  Mine  R.  R. 


High  Pt.  Randleman,  Asheboro  &  South- 
ern R.  R. 
Houghton  Belt  &  Terminal  Ry. 
Houston  &  Brazos  Valley  Ry. 
Houston  &  Shreveport  R.  R. 
Huntingdon  &  Broad  Top  Mountain  R.  R. 

I. 

Iberia  &  Vermillion  R.  R. 
Illinois  Terminal  R.  R. 
Illinois  Transfer  R.  R. 
Indiana  Harbor  Belt  R.  R. 
Indianapolis  &  Frankfurt  R.  R. 
Indianapolis  Union  Ry. 
Interstate  Car  Transfer  Co. 
Interstate  R.  R.  Co. 
Iowa  &  St.  Louis  Ry. 
Iowa  Transfer  Ry. 
Island  Creek  R.  R. 


Jay  Street  Terminal. 

Joliet  &  Northern  Indiana  R.  R. 

Joplin  Union  Depot  Co. 

K. 

Kanawha  Bridge  &  Terminal  Co. 
Kanawha  &  West  Virginia  Ry. 
Kankakee  &  Seneca  R.  R. 
Kansas  City,  Clinton  &  Springfield  Ry. 

Co. 
Kansas  City  Connecting  R.  R. 
Kansas  City,  Shreveport  &  Gulf  Terminal 

Ry. 

Kansas   City   Stock   Yards   Co.— Kansas 

City,  Mo. 
Kansas  City  Terminal  Co. 
Kansas  Southwestern  Ry.  Co. 
Keeneys  Creek  R.  R. 
Kentucky  &  Indiana  Terminal  R.  R. 
Keokuk  &  Des  Moines  Ry. 
Keokuk  &  Hamilton  Bridge  Co. 
Keokuk  Union  Depot  Co. 
Kewaunee,  Green  Bay  &  Western  R.  R. 
Kiowa,  Hardtner  &  Pacific  R.  R. 

L. 

Lackawanna  &  Montrose  R.  R. 
Lake  Charles  &  Northern  R.  R. 
Lake  Erie  &  Eastern  R.  R. 
Lake  Erie  &  Pittsburgh  Ry. 
Lake  Superior  &  Ishpeming  Ry. 
Lake  Superior  Terminal  Ry. 
Lake  Superior  Terminal  &  Transfer  Ry, 
Co. 


224 


Lansing  Manufacturers  R.  R. 

Lansing  Transit  Co. 

Lawrenceville  Branch  R.  R. 

Leavenworth  Depot  &  R.  R,  Co. 

Leavenworth  Terminal  Ry.  &  Bridge  Co. 

Lehigh  &  Susquehanna  R.  R. 

Lewiston  &  Auburn  R.  R. 

Lima  Belt  Ry. 

Litchfield  &  Madison  Ry. 

Little  Kanawha  R.  R. 

Little  Rock  Junction  Ry. 

Logan  &  Southern  Ry. 

Lorain,  Ashland  &  Southern  R.  R. 

Lorain  &  W.  Vhginia  Ry. 

Louisiana  Southern  Ry. 

LouisvUle  Bridge  Co. 

Louisville  &  Jeffersonville  Bridge  Co. 

M. 

Mackinac  Transportation  Co. 
Macon,  Dublin  &  Savannah  R.  R. 
IManistique  &  Lake  Superior  R.  R. 
Marquette  &  Bessemer  Dock  &  Nav.  Co. 
Maumee  Connecting  Ry. 
Maywood  &  Sugar  Creek  Ry. 
Memphis  Union  Station  Co. 
Michigan  Air  Line. 
Milwaukee  Terminal  Ry. 
Minneapolis  Belt  Line  Co. 
Minneapolis  &  Eastern  Ry. 
Minneapolis  Western  Ry. 
Minnesota  &  International  Ry. 
Minnesota  Northwestern  Elec.  Ry. 
Minnesota  Transfer  Ry. 
Mississippi  Central  R.  R. 
Missouri  &  Illinois  Bridge  &  Belt  R.  R. 
Missouri  Pacific  Corp.  in  Illinois. 
Missoiui  Pacific  Corp.  in  Nebraska. 
Missoiui  Valley  &  Blair  Ry.  &  Bridge  Co. 
Montana  Eastern  Ry. 
Montpelier  &  Wells  River  R.  R. 
Morenci  Southern  Ry. 
Morris  Terminal  Ry. 
Muncie  Belt  Ry. 

N. 

Narragansett  Pier  R.  R. 

Natchez  &  Louisiana  Ry.  Transfer  Co. 

Natchez  &  Southern  Ry. 

New  Iberia  &  Northern  R.  R.  Co. 

New  Jersey  &  New  York  R.  R. 

New  Orleans  Great  Northern. 

New  River,  Holston  &  Western  R.  R. 

New  York  Connecting  R.  R. 


New  York  Dock  Co.  R.  R. 

New  York  &  Long  Branch  R.  R. 

New  Westminster  Southern  Ry. 

Nortolk  &  Portsmouth  Belt  Line  R.  R. 

Norfolk  Terminal  Ry. 

Northern  Alabama  Ry. 

Northern  Maine  Seaport  R.  R. 

Northern  Ohio  R.  R. 

Northern  Pacific  Terminal  Co.  of  Oregon. 

Norway  Branch  R.  R. 

Northwestern  Terminal  Ry. 

O. 

Ogden  Mine  R.  R. 

Ogden  Union  Ry.  &  Depot  Co. 

Oklahoma  Belt  Ry. 

Oklahoma  City  Junction  Ry. 

Ontonagon  R.  R. 

Orange  Branch  (Sou.  Ry). 

Orange  &  Northwestern  R.  R. 

Oregon  Electric  Ry. 

Oregon  Trunk  Ry. 


Pacific  Coast  R.  R. 

Paris  &  Great  Northern  R.  R.  Co. 

Pennsylvania  Terminal  Ry. 

Peoria  &  Bureau  Valley  R.  R. 

Peoria  &  Pekin  Union  Ry. 

Peoria  Ry.  Terminal  Co. 

Philadelphia  Belt  Line. 

Pierre  &  Port  Pierre  Bridge  Ry. 

Pierre,  Rapid  City  &  Northwestern  Ry. 

Pine  Bluff,  Arkansas  River  R.  R. 

Piaey  River  &  Paint  Creek  Ry. 

Piqua  &  Ti-oy  Branch  R.  R. 

Pittsbm-gh,    Chartiers   &   Youghiogheny 

Ry. 
Pittsburgh,  Ohio  Valley  &  Cincinnati  Ry. 
Pond  Fork  Ry. 

Pontiac,  Oxford  &  Northei-n  Ry. 
Port  Hm-on  Southern  Ry. 
Portland  Terminal  Co. 
Port  Townsend  &  Puget  Sound  Ry. 
Poteau  Valley  R.  R. 
Pueblo  Union  Depot  &  R.  R.  Co. 
Puget  Sound  &  Willapa  Harbor  Ry. 

Q. 

Quanah,  Acme  &  Pacific  Ry.  Co. 
Quincy,  Omaha  &  Kansas  City  R.  R. 

R. 

Railway  Transfer  Co. 

Rio  Grande,  El  Paso  &  Santa  Fe  R.  R. 


225 


Rio  Grande  Junction  Ry. 

Rio  Grande  Southern. 

Rio  Grande  Soutli western. 

Riverside,  Rialto  &  Pacific  Ry. 

Rock  Island,  Arkansas  &  Louisiana  R.  R. 

Rock  Island  &  Dardanelle  R.  R. 

Rock  Island-Frisco  Terminal  Ry. 

Rock  Island  Memphis  Terminal. 

Rock  Island,  Stuttgart  &  Southern  Ry. 

Roslyn  Connecting  R.  R. 

Roswell  R.  R. 

S. 

St.  Charles  Air  Line. 

St.  Clair  &  Western  R.  R. 

St.  Johnsbury  &  Lake  Champlain  R.  R. 

St.  Joseph  Belt  Ry. 

St.  Joseph  &  Central  Branch  Ry. 

St.  Joseph,  South  Bend  &  Southern  R.  R. 

St.  Joseph  Terminal  R.  R. 

St.  Joseph  Union  Depot  Co. 

St.  Louis-BellevUle  Electric  Ry. 

St.  Louis  Belt  &  Terminal  Ry. 

St.  Louis  Bridge  Co. 

St.  Louis  Merchants  Bridge  Terminal  Ry. 

St.  Louis  National  Stock  Yards  Co. 

St.  Louis  &  0' Fallon  Ry. 

St.  Louis  Terminal  Ry. 

St.  Louis  Transfer  Ry. 

St.  Louis,  Troy  &  Eastern  R.  R. 

Sainte  Marie  Union  Depot  Co. 

St.  Paul  Bridge  &  Terminal  Ry. 

St.  Paul  &  Kansas  City  Short  Line  R.  R. 

St.  Paul  Union  Depot  Co. 

Salt  Lake  City  Union  Depot  &  R.  R.  Co. 

San  Antonio  Belt  &  Terminal  R.  R. 

San  Antonio,  Uvalde  &  Gulf  R.  R. 

Sandy  Valley  &  Elkhom  &  Long  Fork 

R.  R. 
Sandy  Valley  &  Elkhorn  Ry. 
Sapulpa  &  Oil  Field  R.  R. 
Sault  Ste.  Marie  Bridge  Co. 
Seattle,  Port  Angeles  &  Western  Ry. 
Sharpsville  R.  R. 
Shreveport  Bridge  &  Terminal  Co. 
Sievern  &  Knoxville  R.  R. 
Sioux  City  Bridge  Co. 
Sioux  City  Terminal  Ry. 
South  Chicago  &  Southern  R..R. 
South  Dayton  R.  R. 
Southern  Illinois  &  Missouri  Bridge  Co. 
Southern  Pacific  Electric  Ry. 
State  University  R.  R. 

10o889°— 19 15 


Stock  Yards  Terminal  Ry.  Co.  of  St.  Pa 

Sullivan  County  R.  R. 

Sulphur  Mines  R.  R. 

Sunday  Creek  R.  R. 

Sunset  Ry. 

Sweet  City  Bridge  Co. 

Sweet  City  Terminal  Ry. 

Sylvania  Central  Ry. 


Tacoma  Eastern  R.  R. 

Tallulah  Falls  Ry. 

Tennessee  &  Carolina  Southern  Ry. 

Terminal  Railroad  Assoc'n  of  St.  Louis. 

Terminal  R.  R.  of  East  St.  Louis. 

Terminal  R.  R.  of  St.  Louis. 

Texas  Mexican  Ry. 

Texas  ilidland  R.  R. 

Tidewater  Southern  Ry. 

Toledo,  Saginaw  &  Muskegon  Ry. 

Toledo  Terminal  R.  R. 

Trans-Mississippi  Terminal  R.  R. 

Troy  Union  R.  R. 

Tug  River  &  Kentucky  R.  R. 

Tunnel  R.  R.  of  St.  Louis. 

Tylerdale  Connecting  R.  R. 

U. 

Union  Depot  Co.  of  Columbus. 
Union  Depot  Co.  of  St.  Louis  (The). 
Union  Freight  R.  R. 
Union  Ry. 

Union  Ry.  &  Transit  Co.  (of  Illinois). 
Union  R.  R.  of  Baltimore. 
Union  R.  R.  (Pennsylvania). 
Union  Stock  Yards  Co.  of  Omaha. 
Union  Terminal  Co.  of  Dallas,  Tex. 


Van  Buren  Bridge  Co. 
Vermont  Valley  R.  R. 
Virginia  Air  Line  Ry. 
Virginia-Carolina  Ry. 

W. 

Washington  Terminal  R.  R. 
Waterloo,  Cedar  Rapids  &  Northern  Ry. 
Waupaca-Green  Bay  Ry. 
Weatherford,    Mineral    Wells    &    North- 
western Ry. 
Wellston  &  Jackson  Belt  R.  R. 
West  Side  Belt  R.  R. 


226 


West  Tulsa  Belt  Ry. 

Wheeling  Terminal  Ry. 

White  &  Black  River  Valley  R.  R. 

White  Oak  Ry. 

Wichita  Union  Terminal  Ry. 

Wiggins  Ferry  Co. 

Wilkes-Barre  &  Scran  ton  R.  R. 

Williamson  &  Pond  Creek  R.  R. 

Winona  Bridge  Ry.  Co. 

Winston-Salem  South  Bound  Ry. 


Wood  River  Branch  R.  R. 
Wyoming  &  Northwestern  Ry. 

Y. 

Yadkin  R.  R. 

York  Harbor  &  Beach  R.  R. 

Z. 

Zanesville  Belt  &  Terminal  R.  R. 
Zanesville  &  Western  Ry. 
Zanesville  Terminal  R.  R. 

W.  G.  McAdoo, 

Director  General  of  Railroads. 


Supplement  No.  4  to  General  Order  No.   27. 

Washington,  D.  C,  July  25,  1918. 
In  the  matter  of  wages,  hours,  and  other  conditions  of  employment 
of  employees  in  the  mechanical  departments  (specified  herein)  of  the 
railroads  under  Federal  control,  it  is  hereby  ordered : 

Article  I. — Classification  of  Employees. 

Section  1.  Machinists. — Employees  skilled  in  the  laying  out,  fit- 
ting, adjusting,  shaping,  boring,  slotting,  milling,  and  grinding  of 
metals  used  in  building,  assembling,  maintaining,  dismantling,  and 
installing  locomotives  and  engines  (operated  by  steam  or  other 
power),  pumps,  cranes,  hoists,  elevators,  pneumatic  and  hydraulic 
tools  and  machinery,  scale  building,  shafting  and  other  shop  ma- 
chinery; ratchet  and  other  skilled  drilling  and  reaming,  tool  and  die 
making,  tool  grinding  and  machine  grinding,  axle,  wheel  and  tire 
turning  and  boring;  engine  inspecting;  air  equipment,  lubricator  and 
injector  work;  removing,  replacing,  grinding,  bolting  and  breaking 
of  all  joints  on  superheaters,  oxy-acetylene,  thermit  and  electric 
welding  on  work  generally  recognized  as  machinists'  work;  the 
operation  of  all  machines  used  in  such  work,  including  drill  presses 
and  bolt  threaders  using  a  facing,  boring  or  turning  head  or  milling 
apparatus,  and  all  other  work  generally  recognized  as  machinists' 
work. 

1-A.  Macliinist  apprentices. — Include  regular  and  helper  appren- 
tices in  connection  with  the  above  work. 

1-B.  Machinist  helpers. — Employees  assigned  to  help  machinists 
and  apprentices.  Operators  of  all  drill  presses  and  bolt  threaders  not 
equipped  with  a  facing,  boring  or  turning  head  or  milling  apparatus, 
bolt  pointing  and  centering  machines,  wheel  presses,  bolt  threaders, 
nut  tappers  and  facers ;  cranesmen  helpers,  tool-room  attendants,  ma- 
chinery oilers,  box  packers  and  oilers;  the  applying  of  coupling  be- 
tween engines  and  tenders,  locomotive  tender  and  draft  rigging  work, 
except  when  performed  by  carmen. 


07 


227 

Section  2. — Boiler  makers. — Employees  skilled  in  laying  out,  cut- 
ting apart,  building,  or  repaiiing  boilers,  tanks,  and  drums;  inspect- 
ing, patcliing,  riveting,  chipping,  caulking,  flanging,  and  flue  work; 
building,  repairing,  removing,  and  applying  steel  cabs  and  rumiing 
boards;  laying  out  and  fitting  up  any  sheet  iron  or  sheet  steel  work 
made  of  16  gauge  or  heavier,  including  fronts  and  doors;  grate  and 
grate  rigging,  ash  pans,  front  and  netting  and  diapliragm  work;  en- 
gine tender  steel  underframe  and  steel  tender  truck  frames,  except 
where  other  mechanics  perform  tliis  work;  removing  and  applying  all 
stay  bolts,  radials,  flexible  caps,  sleeves,  crown  bolts,  stay  rods,  and 
braces  in  boilers,  tanks,  and  di'ums;  applying  and  removing  arch 
pipes;  operating  punches  and  shears  for  shaping  and  forming  pneu- 
matic stay  bolt  breakers,  air  rams,  and  hammers;  bull,  jam,  and  yoke 
riveters;  boiler  makers'  work  in  connection  witli  the  building  and  re- 
pairing of  steam  shovels,  derricks,  booms,  liousmgs,  circles,  and  coal 
buggies;  eye  beam,  channel  iron,  angle  iron,  and  tee  iron  work;  all 
drilling,  cutting,  and  tappmg,  and  operating  rolls  in  connection  with 
boiler  makers'  work;  oxyacetylene,  thermit,  and  electric  weldmg  on 
work  generally  recognized  as  boiler  makers'  work,  and  all  other  work 
generally  reognized  as  boiler  makers'  vrork. 

^-A. — Boilermaker  ap'prentices. — Include  regular  and  helper  appren- 
tices in  connection  with  above. 

2-B. — Boiler  maker  helpers. — Employees  assigned  to  help  boiler 
makers  and  their  apprentices.  Operators  of  drill  presses  and  bolt 
cutters  in  the  boiler  shop,  punch  and  shear  operators  (cutting  only 
bar  stock  and  scrap). 

Section  3. — Blacksmiths .—EmiplojeGs  skilled  in  welding,  forging, 
shaping,  and  bending  of  metal;  tool  dressing  and  tempering;  spring 
makmg,  tempering,  and  repairing;  potashmg,  case  and  bicUoride 
hardening;  flue  welding  under  blacksmith  foreman;  operating  fur- 
naces, bulldozers,  forging  machmes,  drop-forgmg  machines,  bolt  ma- 
chines, and  Bradley  hammers;  hammersmiths,  drop  hammermen, 
trimmers,  rollkig  mill  operators;  operating  punches  and  shears  doing 
shaping  and  forming  in  connection  with  blacksmiths'  work;  oxy- 
acetylene, thermit,  and  electric  welding  on  work  generally  recognized 
as  blacksmiths'  work,  and  all  other  work  generally  recognized  as 
blacksmiths'  work. 

3-A. — Blacksmith  apprentices. — Include  regular  and  helper  appren- 
tices m  connection  with  the  above. 

3-B. — Blacksmith  helpers. — Employees  assigned  to  helping  black- 
smiths and  apprentices;  heaters,  hammer  operators,  machine  helpers, 
drill  press  and  bolt-cutter  operators,  punch  and  shear  operators  (cut- 
ting only  bar  stock  and  scrap)  in  connection  with  blacksmiths'  work. 

Section  4. — Sheet-metal  workers. — Sheet-metal  workers  shall  in- 
clude turners,  coppersmiths,  and  pipe  fitters  employed  in  shop  yards 


228 

and  buildings  and  on  passenger  coaches  and  engines  of  all  kinds, 
skilled  in  the  buildmg,  erecting,  assembling,  installuig,  dismantling, 
and  mamtaming  parts  made  of  sheet  copper,  brass,  tin,  zinc,  white 
metal,  lead  and  black  planished  and  pickled  iron  of  less  than  16 
gauge,  including  brazing,  soldermg,  tinning,  leading,  and  babbitting, 
the  bending,  fittmg,  cutting,  threadmg,  brazing,  connectmg,  and  dis- 
connecting of  air,  water,  gas,  oil,  and  steam  pipes;  the  operation  of 
babbitt  fires  and  pipe-threading  machmes;  oxyacetjdene,  thermit, 
and  electric  vrelding  on  work  generally  recognized  as  sheet-metal 
workers'  work,  and  all  other  work  generally  recognized  as  sheet- 
metal  workers'  work. 

4-A. — Sheet-metal  worker  apprentices. — Include  regular  and 
helper  apprentices  in  connection  with  the  above. 

4-B. — Sheet-metal  worker  helpers. — Employees  regularly  assigned 
as  helpers  to  assist  sheet-metal  workers  and  apprentices. 

Section  o. — Electrical  workers,  first  chss. — Employees  skilled  m 
repairing,  rebuilding,  installmg,  inspecting,  and  maintaming  the  elec- 
tric wiring  of  generators,  switchboards,  motors  and  control,  rheostats 
and  control,  static  and  rotary  transformers,  motor  generators,  elec- 
tric heacUights  and  headlight  generators;  electric  welding  macliines; 
storage  batteries,  and  axle  lighting  equipment;  pole  lines  and  sup- 
ports for  service  wii'es  and  cables,  catenary  and  monorail  conductors 
and  feed  whes,  overhead  and  underground;  wmding  armatures,  fields, 
magnet  coils,  rotors,  stators,  transformers  and  starting  compensa- 
tors; all  outside  and  inside  wiring  in  shops,  yards,  and  on  steam  and 
electric  locomotives,  passenger  train  and  motor  cars,  and  include 
wiremen,  armature  w^inders,  switchboard  operators,  generator  at- 
tendants, motor  attendants,  substation  attendants,  electric  crane  op- 
erators for  cranes  of  40  tons  capacity  or  over;  cable  sphcers,  Imemen 
and  groundmen,  signalmen  and  signal  maintainors  where  handling 
wires  and  apparatus  carrying  240  volts  or  over  or  m  dense  traffic 
zones,  and  all  other  work  properly  recognized  as  first-class  electrical 
workers'  work. 

5-A.— Electrical  workers,  second  class. — Operators  of  electric  cranes 
of  less  than  40  tons  capacity;  linemen  and  groundmen,  signalmen 
and  signal  mamtainers,  where  handling  wires  and  apparatus  carrying 
less  than  240  volts  and  in  normal  traffic  zones,  and  all  other  work 
properly  recognized  as  second-class  electrical  workers'  Avork. 

5-B. — Electrical  worker  apprentices. — Include  regular  and  helper 
apprentices  in  connection  with  the  above. 

5-C. — Electrical  worker  helpers.— Employees  regularly  assigned  as 
helpers  to  assist  electrical  workers  and  apprentices,  including  electric 
lamp  trimmers  who  do  no  mechanical  work. 

Section  6.— Carmen. — Employees  skilled  in  the  building,  main- 
taining,  dismantling,  painting,  upholstering,   and  inspectmg  of  aU 


229 

passenger  and  freight  train  cars,  both  wood  and  steel;  planing  mill, 
cabinet,  and  bench  carpenter  work,  pattern  and  flask  making,  and  all 
other  carpenter  work  hi  shop  antl  yards;  carmen's  work  in  building 
and  repairing  motor  cars,  lever  cars,  hand  cars,  and  station  trucks; 
building,  repairmg,  removing,  and  applying  locomotive  cabs,  pilots, 
pilot  beams,  runnuig  boards,  foot  and  headUght  boards,  tender 
frames  and  trucks;  pipe  and  inspection  work  in  connection  with  air- 
brake equipment  on  freight,  cars;  applying  patented  metal  roofing; 
repairmg  steam-heat  hose  for  locomotives  and  cars;  operating  punches 
and  shears  doing  shaping  and  forming  hand  forges  and  heating 
torches  in  connection  with  carmen's  work;  painting,  varnishing,  sur- 
facing, lettering,  decorating,  cutting  of  stencils  and  removmg  paint; 
all  other  work  generally  recognized  as  painters'  work  under  the 
supervision  of  the  locomotive  and  car  departments;  joint  car  inspec- 
tors, car  inspectors,  safety  appliance,  and  train-car  repairers,  wrecking 
derrick  engineers,  and  wheel-record  keepers;  oxyacetylene,  thermit, 
and  electric  welding  on  work  generally  recognized  as  carmen's  work, 
and  all  other  work  generally  recognized  as  carmen's  work. 

6-A. — Carmen  apprentices. — Include  regular  and  helper  apprentices 
in  connection  with  the  above. 

Q-B.^— Carmen  lielpers. — Employees  regularly  assigned  to  help 
carmen  and  apprentices;  car  oilers  and  packers,  material  carriers, 
and  rivet  heaters;  operators  of  bolt  threaders,  nut  tappers,  drill 
presses,  and  punch  and  shear  operators  (cutting  only  bar  stock  and 
scrap) . 

Section  7. —  Holders. — Include  molders,  cupola  tenders,  and  core 

makers. 

7-A. —  Molder  apprentices. — Include  regular  and  helper  appren- 
tices in  connection  with  the  above. 

7-B. —  Molder  helpers. — Employees  regularly  assigned  to  help 
molders,  cupola  tenders,  core  makers  and  then  apprentices. 

Article  II. — Rates  and  Method  of  Application. 

Section  1.  For  the  above  classes  of  employees  (except  carmen, 
second-class  electrical  workers,  and  all  apprentices  and  helpers)  who 
have  had  four  or  more  years'  experience  and  who  were  on  January  1, 
1918,  receiving  less  than  55  cents  per  hour,  establish  basic  minimum 
rate  of  55  cents  per  hour,  and  to  this  basic  minimum  rate  and  all  other 
hourly  rates  of  55  cents  per  hour  and  above,  in  effect  as  of  January  1, 
1918,  add  13  cents  per  hour,  establishing  a  minimum  rate  of  68  cents 
per  hour. 

Section  1-A.  For  carmen  and  second-class  electrical  workers  who 
have  had  four  or  more  years'  experience  and  who  were  on  January 
1,  1918,  receiving  less  than  45  cents  per  hour,  establish  a  basic  mini- 
mum rate  of  45  cents  per  hour,  and  to  this  minimum  basic  rate  and 


230 

all  other  hourly  rates  of  45  cents  and  above,  in  effect  as  of  January 
1,  1918,  add  13  cents  per  hour,  establishing  a  minimum  rate  of  58 
cents  per  hour. 

Section  1-B.  Rates  of  compensation  exceeding  the  minimum 
rates  established  herein  to  be  preserved ;  the  entering  of  employees  in 
the  service  or  the  changing  of  their  classification  or  work  shall  not 
operate  to  establish  a  less  favorable  rate  or  condition  of  employment 
than  herein  established. 

Section  1-C.  The  Director  General  recognizes  that  the  minimum 
rates  established  herein  may  be  exceeded  in  the  case  of  men  of  excep- 
tional skill,  who  are  doing  special  high-grade  work,  which  has  here- 
tofore enjoyed  a  differential.  Such  cases  would  include  pattern 
makers,  passenger-car  repair  men,  oxy-acetylene,  thermit,  and  electric 
weldmg  in  car-repair  work,  etc.,  and  should  be  presented  to  the 
Board  of  Railroad  Wages  and  Working  Conditions  for  recommenda- 
tion as  provided  in  General  Order  No.  27. 

Section  2.  The  above  classes  of  employees  (except  carmen, 
second-class  electrical  workers,  and  all  apprentices  and  helpers)  who 
have  had  less  than  four  years'  experience  in  the  Vv^ork  of  theu*  trade 
will  be  paid  as  follows : 

(a)   One  year's  experience  or  less,  50  cents  per  hour. 

(h)  Over  one  year  and  under  two  years'  experience,  53  cents  per 
hour. 

(c)  Over  two  years'  and  under  three  years'  experience,  57  cents 
per  hour, 

(d)  Over  three  years'  and  under  four  years'  experience,  62  cents 
per  hour. 

Section  2-A.  Carmen  and  second-class  electrical  workers  who  have 
had  less  than  four  years'  experience  in  the  work  of  their  trade  will 
be  paid  as  follows : 

(a)  One  year's  experience  or  less,  48^  cents  per  hour. 

(6)  Over  one  year  and  under  two  years'  experience,  50^  cents 
per  hour. 

(c)  Over  two  years'  and  under  tliree  years'  experience,  52^  cents 
per  hour. 

{d)  Over  three  years'  and  under  four  years'  experience,  54^  cents 
per  hour. 

Section  2-B.  At  the  expiration  of  the  four-year  period  the  em- 
ployees mentioned  in  section  2  and  section  2-A  shall  receive  the 
respective  minimum  of  their  craft. 

Article  III. 

Section  1.  Regular  apprentices  between  the  ages  of  16  and  21, 
engaging  to  serve  a  four-year  apprenticeship,  shall  be  paid  as  fol- 
lows: Starting-out  rate  and  for  the  first  six  months,  25  cents  per 


231 

hour,  with  an  increase  of  2^  cents  per  hour  for  each  six  montlis 
thereafter  up  to  and  including  the  first  three  years ;  5  cents  per  hour 
increase  for  the  first  six  months  of  the  fourth  year  and  7^  cents  per 
hour  for  the  last  six  months  of  the  fourth  year. 

Section  1-A.  If  retained  in  the  service  after  the  expiration  of 
their  apprenticeship,  apprentices  in  the  respective  trades  shall  re- 
ceive not  less  than  the  minimum  rate  established  for  their  craft. 

Section  2.  Helpers  in  the  basic  trades  herein  specified  will  be 
paid  45  cents  per  hour. 

Section  3.  Helper  apprentices  will  receive  the  minimum  helper 
rate  for  the  first  six  months,  with  an  increase  of  2  cents  per  hour  for 
every  six  months  thereafter  until  they  have  served  three  years. 

Section  3-A.  Fifty  per  cent  of  the  apprentices  may  consist  of 
helpers  who  have  had  not  less  than  two  consecutive  years'  experience 
in  their  respective  trades  in  the  shop  on  the  division  where  advanced. 
In  the  machinist,  sheet-metal  worker,  electric,  and  molder  trades  the 
age  limit  for  advancement  wiU  be  25  years;  in  the  boilermaker, 
blacksmith,  and  carmen  trades  30  years. 

Section  4.  In  the  locomotive  and  car  departments  gang  foremen 
or  leaders  and  all  men  in  minor  supervisory  capacity  and  paid  on  an 
hourly  basis  will  receive  5  cents  per  hour  above  the  rates  provided 
for  their  respective  crafts. 

Section  5.  The  supervisory  forces  of  the  locomotive  and  car 
departments,  paid  on  a  monthly  basis  and  exercising  supervision 
over  the  skilled  crafts,  will  be  paid  an  increase  of  $40  per  month  in 
addition  to  the  monthly  rate  as  of  January  1,  1918,  with  a  minimum 
of  $155  per  month  and  a  maximum  of  $250  per  month. 

Article  IV. — General  Application. 

Section  1.  Each  railroad  will  in  payments  to  employees  on  and 
after  July  1,  1918,  include  these  increases  therein. 

Section  1-A.  The  increases  in  wages  and  the"  rates  established 
herein  shall  be  effective  as  of  January  1,  1918,  and  are  to  be  paid 
according  to  the  time  served  to  all  who  were  then  in  the  railroad 
service,  or  who  have  come  into  such  service  since,  and  remained 
therein.  A  proper  ratable  amount  shaU  also  be  paid  to  those  who 
for  any  reason  since  January  1,  1918,  have  been  dismissed  from  the 
service,  but  shall  not  be  paid  to  those  who  have' left  it  voluntarily. 
Men  who  have  left  the  railroad  service  to  enter  the  military  service 
of  the  Army  or  Navy  shall  be  entitled  to  the  pro  rata  increase 
accruing  on  their  wages  up  to  the  time  they  left,  and  the  same  rule 
shall  apply  to  those  who  have  been  transferred  from  one  branch  of 
the  raih'oad  service,  or  from  one  road,  to  another. 

Section  2.  The  hourly  rates  named  herein  are  for  an  eight-hour  day 
and  one  and  one-half  time  wiU  be  paid  for  aU  overtime,  including 


232 

Sundays  and  the  following  holidays :  New  Year's  Day,  Washington's 
Birthday,  Decoration  Day,  Fourth  of  July,  Labor  Day,  Thanks- 
giving, and  Christmas. 

Section  3.  While  the  specific  rates  per  hour  named  herein  will  be 
retroactive  to  January  1,  1918,  the  special  overtime  provisions  estab- 
hshed  in  section  2  of  this  article  will  be  effective  as  of  August  1, 
1918,  with  the  provision  that  in  computing  overtime  to  determine 
back  pay  to  January  1,  1918,  overtime  will  be  paid  at  a  pro  rata 
rate  for  all  overtime  worked  in  excess  of  the  hours  constituting  the 
recognized  day  or  night  shift,  except  where  higher  overtime  rate 
basis  exists,  or  has  been  applied,  in  which  event  the  more  favorable 
condition  shall  be  the  basis  of  computing  back  pay  accruing  from 
this  order. 

Section  4.  Employees,  except  monthly  salaried  employees,  coming 
within  the  scope  of  this  order,  sent  out  on  the  road  for  emergency 
service,  shall  receive  continuous  time  from  the  time  called  until 
their  return  as  follows:  Overtime  rates  for  all  overtime  hours 
whether  working,  waiting,  or  traveling,  and  straight  time  for  the 
recognized  straight  time  hours  at  home  stations,  whether  working, 
waiting,  or  traveling,  except  that  after  the  first  24  hours,  if  the  work 
is  completed  or  they  are  relieved  for  5  hours  or  more,  such  time 
shall  not  be  paid  for,  provided  that  in  no  case  shall  an  emplo^^ee 
be  paid  for  less  than  8  hours  on  week  days  and  8  hours  at  one  and  one- 
half  time  for  Sunda3^s  and  holidays  for  each  calendar  day.  Where 
meals  and  lodging  are  not  provided  by  the  railroad  an  allowance  Vv^iU 
be  made  for  each  meal  or  lodging.  Employees  will  receive  allowance 
for  expenses  not  later  than  the  time  when  they  are  paid  for  the  service 
rendered. 

Section  5.  Employees  specified  herein,  Avhen  sent  from  home  point 
to  temporarily  fill  vacancy  or  perform  work  at  outside  division  points, 
will  be  paid  straight  time  and  overtime  rates  as  per  shop  rules,  in- 
cluding going  and  return  trip,  in  addition  to  which  they  will  be  paid 
pro  rata  at  the  rate  of  ^2  per  day  for  meals  and  lodging. 

Section  6.  Carmen  stationed  at  points  requiring  only  one  em- 
ployee on  day  shift  or  night  shift,  or  day  and  night  shifts,  shall  be 
paid  eight  hours  at  not  less  than  the  hourly  rate  provided  herein. 

Section  7.  Mechanics  now  regularly  assigned  to  perform  road 
work  and  paid  on  a  monthly  basis  shall  be  paid  for  eight  hours  at 
not  less  than  the  hourly  rate  provided  herein. 

Section  8.  Employees  on  a  piecework  basis  shall  receive  not  less 
than  the  minimum  rate  per  hour  awarded  to  the  hourly  workers, 
including  time  and  one-half  for  overtime,  as  hereinbefore  provided; 
otherwise  piecework  rates  provided  in  General  Order  No.  27  shall 
apply. 


233 

Section  9.  The  application  of  this  order  shall  not,  in  any  case, 

operate  to  establish  a  less  favorable  wage  rate  than  in  effect  January 

1,  1918. 

Article  V. — Payments  for  Back  Time. 

Section  1.  As  promptly  as  possible  the  amount  due  in  back  pay 
from  January  1,  1918,  in  accordance  with  the  provisions  of  this 
order,  will  be  computed  and  payment  made  to  the  employees, 
separately  from  the  regular  monthly  payments,  so  that  employees 
will  know  the  exact  amount  of  these  back  payments. 

Section  2.  Recognizing  the  clerical  work  necessary  to  make  these 
computations  for  back  pay.  and  the  probable  delay  before  the  entire 
period  can  be  covered,  each  month,  beginning  with  January,  shaU  be 
computed  as  soon  as  practicable,  and,  as  soon  as  completed,  pay- 
ments will  be  made. 

Article  VI. — Interpretation  of  this  Order. 

Section  1.  Railway  Board  of  Adjustment  No.  2  is  authorized  by 
Article  IX  of  General  Order  No.  27  to  perform  the  following  duty: 

Wages  and  hours,  when  fixed  by  the  Director  General,  shall  be  incorporated  into 
existing  agreements  on  the  several  railroads,  and  should  differences  arise  between 
the  managements  and  the  employees  of  any  of  the  railroads  as  to  such  incorporation) 
such  questions  of  difference  shall  be  decided  by  the  Railway  Board  of  Adjustment 
No.  2  when  properly  presented,  subject  always  to  review  by  the  Director  General. 

Section  2.  In  addition  to  the  foregoing,  other  questions  arising  as 
to  the  intent  or  application  of  this  order  in  respect  to  the  classes  of 
employees  within  the  scope  of  Railway  Board  of  Adjustment  No.  2 
shall  be  submitted  to  such  board,  which  board  shall  investigate  and 
report  its  recommendations  to  the  Director  General. 

Section  3.  All  rates  applied  under  this  order  shall  be  filed  b}'  the 
Regional  Directors  wiih  the  Board  of  Raih'oad  Wages  and  Working 
Conditions. 

Section  4.  The  rates,  increases,  and  other  conditions  of  emplo}'- 
ment  herein  established  for  the  classes  of  employees  herein  specified 
shall  supersede  the  rates,  increases,  and  other  conditions  established 
by  General  Order  27,  except  as  provided  in  section  8,  Article  IV. 


In  reaching  the  conclusions  upon  which  this  order  is  based,  I  have 
been  keenly  conscious  not  alone  of  the  interests  of  the  large  number 
of  railway  employees  who  are  greatly  benefited  thereby,  but  also  of 
my  solemn  duty  to  the  American  people  to  see  to  it  that  the  trust  they 
have  committed  to  me  is  discharged  faithfully,  with  justice  to  them 
as  well  as  to  the  railroad  employees  concerned.  No  right  decision  can 
be  made  which  considers  only  the  demands  and  interests  of  any  class 
of  men  apart  from  the  paramount  interest  of  the  public  and  the 
supreme  necessity  of  winning  this  war. 


234 

Now  that  the  decision  has  been  made,  the  American  people,  whose 
servants  we  are,  expect  every  railroad  employee  to  devote  himself 
with  now  energy  to  his  work,  and  by  faithful  and  efficient  service  to 
justify  the  large  increases  of  pay  and  the  improvement  in  working 
conditions  hereby  granted.  The  American  people  have  a  right  to 
expect  this  and  they  wiU  be  content  with  nothing  less. 

It  is  of  the  utmost  importance  that  motive  power  and  cars  shall  be 
kept  in  repair  and  that  the  output  of  railroad  shops  throughout  the 
country  shall  be  greatly  increased  in  the  future.  Unless  this  is  done, 
the  railroads  can  not  efficiently  perform  the  increased  duties  imposed 
upon  them  by  the  war,  and  the  fighting  power  of  our  armies  in 
France  and  of  our  navies  on  the  high  seas  will  be  seriously  impaired. 

I  am  proud  of  the  loyal  service  the  great  body  of  railroad  men 
tliroughout  the  country  have  rendered  to  their  Government  since 
the  railroads  have  come  under  Federal  control.  It  is  a  genuine 
pleasure  to  make  this  acknowledgment,  but  I  should  not  fail  to  say 
at  the  same  time  that  there  are  instances  where  agitations  and  dis- 
turbances in  some  of  the  locomotive  and  car  shops  have  been  ex- 
tremely hurtful  to  the  country.  The  loyal  and  patriotic  employees, 
who  constitute  the  great  majority  of  the  army  of  railroad  workers, 
have  not  yielded,  be  it  said  to  their  credit  and  honor,  to  these  dis- 
turbances. But  the  few  who  have  have  done  their  country  a  grievous 
injury  by  impairing  the  efficiency  and  reducing  the  output  of  the 
shops  where  these  disturbances  have  occurred. 

The  loyal  and  patriotic  employees  can  render  a  new  and  powerful 
service  to  their  country  by  using  their  influence  to  expose  any  who 
may  become  slackers  in  their  work,  by  cooperating  with  their  officers 
in  the  enforcement  of  discipline,  and  by  increasing,  to  the  utmost 
limit  of  their  capacity,  the  output  of  locomotives  and  cars  which 
are  so  essential  to  the  efficient  operation  of  the  railroads  of  the  coun- 
try and  to  the  success  of  our  armies  in  the  field.  I  know  I  can  count 
on  the  patriotism  and  devotion  to  duty  of  every  true  American  en- 
gaged in  the  railway  service  of  the  United  States. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Addendum  No.  1  to  Supplement  No.  4  to  General  Order  No.  27. 

Washington,  D.  C,  September  1,  1918. 
Effective  September  1,   1918,  superseding  General  Order  No.  27 
and  in  lieu  thereof,  as  to  the  employees  herein  named,  the  following 
rates  of  pay  and  rules  for  coach  cleaners  are  hereby  ordered : 

Article  I. — Rates  of  Pay. 

{a)  For  coach  cleaners  who  were  on  January  1,  1918,  prior  to  the 
application  of  General  Order  No.  27,  receiving  less  than  sixteen  (16) 


235 

cents  per  hour,  establish  a  basic  minimum  rate  of  sixteen  (16)  cents 
per  hour,  and  to  this  basic  minimum  rate  and  aU  hourly  rates  of  six- 
teen (16)  cents  and  above  add  twelve  (12)  cents  per  hour,  estabhsh- 
ing  a  minimum  rate  of  twenty-eight  (28)  cents  per  hour,  provided 
that  the  maximum  shall  not  exceed  forty  (40)  cents  per  hour. 
(h)  All  coach  cleaners  shall  be  paid  on  the  hourly  basis. 

Article  II. — Preservation  of  Rates. 

(a)  The  minimum  rates  and  all  rates  in  excess  thereof,  as  herein 
established,  and  higher  rates  which  have  been  authorized  since 
January  1,  1918,  except  by  General  Order  No.  27,  shall  be  preserved. 

(Jb)  Coach  cleaners  temporarily  or  permanently  assigned  to  higher- 
rated  positions  shall  receive  the  higher  rates  while  occupying  such 
positions;  coach  cleaners  temporarily  assigned  to  lower-rated  posi- 
tions shall  not  have  their  rates  reduced. 

Article  III. — Hours  of  Service. 

Eight  consecutive  hours,  exclusive  of  the  meal  period,  shall  con- 
stitute a  day's  work. 

Article  IV. — Overtime. 

(a)  Where  there  is  no  existing  agreement  or  practice  more  favor- 
able to  the  employees,  overtime  will  be  computed  for  the  ninth  and 
tenth  hour  of  continuous  service,  pro  rata  on  the  actual  minute  basis, 
and  thereafter  at  the  rate  of  time  and  one-half  time.  Even  houi-s 
will  be  paid  for  at  the  end  of  each  pay  period;  fractions  thereof  wall 
be  carried  forward. 

(b)  Coach  cleaners  will  not  be  required  to  suspend  work  during 
regular  hours  to  absorb  overtime. 

Article  V.^ — Application. 

The  rates  of  pay  and  rules  herein  estabhshed  shall  be  incorporated 
into  existing  agreements  on  the  several  railroads. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Addendum  No.  2  to  Supplement  No.  4  to  General  Order  No.  27. 

Washington,  D.  C,  September  1,  1918. 
Effective  September  1,  1918,  and  as  provided  for  in  section  1-C  of 
Article  II  of  Supplement  No.  4  to  General  Order  No.  27,  the  following 
rates  of  compensation  for  certain  classes  of  employees  specified 
herein  in  the  respective  shop  crafts  who  have  heretofore  received  a 
rate  in  excess  of  the  established  minimum  rate  and  rates  of  compensa- 
tion for  classes  of  employees  named  in  sections  5  and  6  of  this  order 
which  were  not  included  in  Supplement  No.  4  are  hereby  ordered. 


236 
Article  I. 

BOILERMAKERS. 

Sec.  1.  For  flangers  and  layers  out,  establish  a  rate  of  two  and 
one-half  (2J)  cents  per  hour  above  the  minimum  rate  established  for 
boilermakers,  at  point  employed. 

BLACKSMITHS. 

Sec.  2.  For  hammersmiths  working  out  of  heavy  furnaces  and 
frame  fire  blacksmiths,  establish  a  rate  of  two  and  one-half  (2^) 
cents  per  hour  above  the  minimum  rate  established  for  blacksmiths, 
at  point  employed. 

CARMEN. 

Sec.  3.  For  cabinetmakers,  coach  and  locomotive  carpenters, 
upholsterers,  planing  mill  men,  millwrights,  pattern  makers,  passenger 
train  steel  car  body  builders  and  repairers,  air  brake  rack  men,  coach 
and  locomotive  painters  employed  to  perform  varnishing,  surfacing, 
lettering,  or  decorating;  silver  and  nickel  platers  and  buffers;  oxy- 
acetylene,  thermit,  and  electric  welders,  on  work  generally  recognized 
as  carmen's  work,  who  were  on  January  1,  1918,  receiving  less  than 
fifty-five  (55)  cents  per  hour,  establish  a  basic  minimum  rate  of 
fifty-five  (55)  cents  per  horn-;  and  to  this  basic  minimum  rate,  and 
all  other  hourly  rates  of  fifty-five  (55)  cents  per  hour  and  above  in 
effect  as  of  January  1,  1918,  add  thirteen  (13)  cents  per  hour,  estab- 
lishing a  minimum  rate  of  sixty-eight  (68)  cents  per  hour. 

FREIGHT  TRAIX  STEEL  CAR  BUILDERS  AXD  REPAIRERS. 

Sec.  4.  For  freight  train  steel  car  body  builders  and  repairers,  who 
on  January  1,  1918,  were  receiving  less  than  fifty  (50)  cents  per  hour, 
establish  a  basic  minimum  rate  of  fifty  (50)  cents  per  hour,  and  to 
this  basic  minimum  rate,  and  all  other  hourly  rates  of  fifty  (50) 
cents  per  hour  and  above  in  effect  as  of  January  1,  1918,  add  thirteen 
(13)  cents  per  hour,  establishing  a  minimum  rate  of  sixtj^-three  (63) 
cents  per  hour. 

CAR  DEPARTMENT  EMPLOYEES. 

Sec.  5.  Include  stock  keepers  (car  department)  as  carmen  helpers, 
with  the  rate  established  for  helpers  of  shop  crafts. 

GENERAL. 

Sec.  6.  For  piecework  inspectors  and  routers,  apply  section  4, 
Article  III  of  Supplement  No.  4  to  General  Order  No.  27. 

miscellaneous. 

Sec.  7.  On  some  of  the  railroads  and  at  certain  main  snop  points 
of  certain  other  railroads,  boilermakers,  classified  and  performing  the 


237 

work  of  boiler  inspectors,  and  those  of  the  shop  crafts  designated  in 
Supplement  No.  4  to  General  Order  No.  27,  engaged  in  operating 
oxyacetylene,  thermit,  and  electric  welding  appliances,  received  a 
rate  in  excess  of  the  recognized  standard  or  going  rate  "of  the  me- 
chanics; where  this  practice  was  in  effect,  establish  a  rate  of  two  and 
one-half  (2^^)  cents  per  hour  above  the  minimum  rate  established  for 
the  mechanic  in  Supplement  No.  4  to  General  Order  No.  27. 

APPLICATION. 

Sec.  8.  The  application  of  this  order  shall  not  in  any  case  operate 
to  establish  a  less  favorable  rate  or  condition  than  provided  for  in 
Supplement  No.  4  to  General  Order  No.  27. 

Sec.  9.  For  application  of  the  provisions  of  this  order,  see  Articles 
IV,  V,  and  VI,  Supplement  No.  4  to  General  Order  No.  27,  excepting 
therefrom  such  provisions  as  relate  to  its  effective  date. 

W.   G.   McAdoo, 
Director  General  of  Railroads. 


Amendment  No.  1  to  Supplement  No.  4  to  General  Order  No.  27. 

Washington,  D.  C.,  Sejptemher  23,  1918. 
To  remove  certain  inequities  resulting  from  the  application  of 
section  2,  Article  III,  of  Supplement  No.  4  to  General  Order  No.  27, 
and  as  a  substitute  therefor,  it  is  hereby  ordered,  effective  September 
1st,  1918: 

compensation  for  helpers — shop  crafts. 

For  helpers  in  the  basic  trades  specified  in  Supplement  No,  4  to 
General  Order  No.  27,  who,  on  January  1,  1918,  were  receiving  less 
than  thirty-two  (32)  cents  per  hour,  establish  a  basic  minimum  rate 
of  thirty-two  (32)  cents  per  hom*;  to  this  basic  minimum  rate,  and 
all  hourly  rates  of  thirty-two  ^32)  cents  per  hour  and  above  in  effect 
as  of  January  1,  1918,  add  thii'teen  (13)  cents  per  hour,  establishing 
a  minimum  rate  of  forty -five  (45)  cents  per  hour. 

W.   G.  McAdoo, 
Director  General  of  Railroads. 


Interpretation  No.  1  to  Supplement  No.  4  to  General  Order 
No.  27  and  Addendum  No.  2  Thereto. 

Washington,  D.  C.,  September  16,  1918. 
Employees  in  any  department,  performing  the  classes  of  work 
specified  in  Supplement  No.  4  to  General  Order  No.  27  and  Adden- 
dum No.  2  thereto,  shall  receive  the  rates  of  pay  and  be  governed  by 
the  conditions  of  employment  provided  for  therein. 


238 

If  their  present  pay-roll  classification  does  not  conform,  they  shall 

be  given  correct  classification. 

W.  G.  McAdoo, 

Director  General  of  Railroads. 


Interpretation  No.  2  to  Supplement  Xo.  4  to  General  Order  No.  27. 

Washington,  December  17^  1918. 
Question. 

(«)  Does  Supplement  No.  tt,  its  amendments,  addenda,  and  inter- 
pretations, to  General  Order  No.  27,  apply  to  mechanics  and  helpers 
engaged  in  the  construction,  maintenance,  and  repair  of  electric,  elec- 
tric-pneumatic, electric-mechanical,  and  mechanical  interlocking  and 
signaling  systems  ? 

{h)  Machinists,  electricians,  blacksmiths,  pipe  fitters,  etc.,  and  their 

respective  helpers  are  employed  on  the  work  above  specified.    How 

shall  they  be  classified  ? 

Decision. 

Apply  Interpretation  No.  1  to  Supplement  No.  4,  issued  under  date 
of  September  16,  1918,  reading  as  follows : 

"  Employees  in  any  department  performing  the  classes  of  work 
specified  in  Supplement  No.  4  to  General  Order  No.  27  and 
Addendum  No.  2  thereto,  shall  receive  the  rates  of  pay  and  be 
governed  by  the  conditions  of  employment  provided  for  therein. 
''  If  their  present  pay-roll  classification  does  not  conform,  they 
shall  be  given  correct  classification." 

The  classification  of  a  composite  mechanic  shall  be  based  upon  the 
preponderating  class  of  work  performed,  and  the  rate  of  pay  shall 
not  be  less  than  the  minimum  hourly  rate  of  highest  rated  craft  rep- 
resented in  the  crafts  of  which  he  is  the  composite. 

Examjyle  {a). — A  mechanic  perforins  work  coming  under  the  clas- 
sification of  machinist,  sheet-metal  worker,  first  and  second  class 
electrical  Avorker,  the  preponderating  amount  of  work  is  that  of  a 
second-class  electrical  worker.  He  shall  be  classified  as  an  electrician 
and  paid  not  less  than  68  cents  per  hour. 

Example  (h). — A  mechanic  performs  work  coming  under  the 
classification  of  machinist,  sheet-metal  worker,  first  and  second  class 
electrical  worker,  the  preponderating  amount  of  work  is  that  of  a 
machinist.  He  shall  be  classified  as  a  machinist  and  paid  not  less 
than  68  cents  per  hour. 

This  decision  shall  not  be  construed — 

(1)  To  supersede,  alter,  or  amend  the  lines  of  demarcation  as 
recognized  by  the  crafts  who  respectiAcly  perform  the  work  enu- 


EREATUM. 

[Insert  in  Bulletin  No.  4  (Revised)  facing  page  238.] 

Interpretation  No.  1^  to  Supplement  No.  4  and  its  Addenda  to 
General  Order  No.  27. 

Washington,  Novemher  4, 1918. 

Question. 

Is  it  permissible  to  assign  a  mechanic's  helper,  when  mechanic  is 
off  duty  for  any  cause,  to  the  mechanic's  work  at  mechanic's  rate  for 

that  time  only'^ 

Decision. 

Helpers  are  not  to  be  assigned  to  mechanics'  work,  except  as  helper 
apprentices,  in  accordance  with  Section  3-A,  Article  III,  Supplement 
No.  4  to  General  Order  No.  27,  and  the  governing  rules  of  existing 
agreements,  or  under  the  conditions  contained  in  the  Director  Gen- 
eral's memorandum  to  Mr.  A.  O.  Wharton,  President  of  the  Railway 
Employees  Department,  A.  F.  of  L.,  under  date  of  February  14, 
1918 ;  paragraphs  1  to  6  inclusive  herewith  quoted : 

"  1.  The  hours  of  labor  in  shops  and  roundhouses  to  be  governed 
by  the  necessities  as  indicated  by  the  general  condition  of  equipment. 
At  shops  and  roundhouses  now  working  one  shift  which  totals  less 
than  70  hours  per  week,  an  increase,  preferably  on  a  seven-day  basis, 
may  be  made.  Where  desired,  working  hours  may  be  so  arranged 
that  men  will  be  released  at  4  p.  m.  on  one  day  each  week.  Existing 
working  agreements  to  govern  the  rates,  subject  to  the  action  of  the 
Railroad  Wage  Commission. 

"  2.  All  apprentices  who  have  served  three  years  may  be  promoted 
to  mechanics  and  paid  the  going  rate  of  wages  for  that  position. 
Such  promoted  apprentices  to  be  given  the  right  of  practical  ex- 
perience on  work  of  their  respective  trades  to  which  they  had  not 
been  advanced  during  the  three-year  period. 

"  3.  Helpers  in  their  respective  trades  who  have  had  five  or  more 
years'  experience  may  be  promoted  to  classification  of  mechanics ; 
they  to  receive  mechanics'  rate  and  be  given  an  opportunity  to  learn 
all  branches  of  the  trade. 

"The  duly  authorized  committeeman  of  each  trade  in  each  shop 
covered  by  agreemeiits  shall  be  consulted,  and  mutual  understanding 
arrived  at  in  promoting  helpers,  and  the  ratio  of  helpers  to  be  pro- 
moted, to  the  number  of  mechanics  in  any  one  trade  in  any  one  shop, 
shall  not  exceed  20  per  cent. 

115473°— 19  ♦ 


"  The  international  officers  and  general  chairmen  of  each  trade  on 
each  road  covered  by  agreements  shall  be  furnished  a  complete 
record  of  the  men  promoted. 

"4.  Mechanics  applying  for  employment  will  not  be  denied  such 
employment  for  any  cause  other  than  inability  to  perform  the  work; 
this  preference  rule  to  be  in  eft'ect  as  long  as  three-year  apprentices 
or  promoted  helpers  are  employed  at  mechanics'  rates. 

"  5.  Where  a  reduction  is  made  in  the  force  of  mechanics,  pro- 
mxOted  helpers  in  accordance  with  their  seniority  shall  be  set  back 
first,  then  advanced  apprentices ;  no  mechanics  to  be  laid  off  until  all 
such  promoted  helpers  and  apprentices  have  been  set  back. 

"  6.  The  promotions  above  referred  to  are  to  meet  an  emergency 
caused  by  the  war,  and  shall  cease  at  the  close  of  the  war." 

In  the  absence  of  an  agreement  with  the  employees  coming  within 
the  scope  of  Supplement  No.  4  (and  its  Addenda)  to  General  Order 
No.  27  this  decision  shall  govern. 

W.  G.  McAdoo, 
Director  General  of  Railroads, 


WASHINGTON  :  GOTBRNMENT  PRTNTINO  OPPICH  :  1«» 


239 

merated  in  Supplement  Xo.  4,  its  addenda  and  interpretations  to 
General  Order  No.  27 ; 

(2)  To  extend  the  practice  of  using  a  mechanic  to  perform  the 
work  of  two  or  more  crafts. 

Whenever  investigation  develops  that  the  work  herein  referred  to 
can  be  arranged  so  as  to  assign  mechanics  to  perform  the  work  of  one 
craft,  such  assignment  shall  be  made. 

W.  G.  Mc^Vdoo, 
Director  General  of  Railroads. 


Interpretation  No.  3  to  Supplement  No.  4  to  General  Order  No. 
27.     (See  interpretation  No,  -S  to  General  Order  No.  27.) 


Supplement  No,  5  to  General  Order  No.  27, 

Washington,  D.  C,  August  9,  1918. 
Eifective  August  1,  1918,  the  wages,  hours,  and  other  conditions 
of  employment  of  employees  of  the  Operating  Department  of  the 
Pullman  Company  will  be  the  same  as  those  fixed  in  Supplement 
No.  4  to  General  Order  No.  27  for  corresponding  classes  of  railroad 
employees,  but  none  of  the  provisions  named  therein  will  be  retro- 
active prior  to  August  1,  1918, 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Supplement  No.  6  to  General  Order  No  27. 

Washington,  D.  C,  August  30,  1918. 

In  General  Order  No.  27  and  supplements  thereto,  and  m  certain 
memoranda  of  understanding  creating  Railway  Boards  of  Adjust- 
ment put  in  effect  by  General  Orders  No.  13  and  No.  29,  naethods  have 
been  provided  for  interpretation  of  wage  orders  issued  by  the  Director 
General  upon  recommendations  of  such  boards  and  the  Division  of 
Labor,  "subject  always  to  review  by  the  Director  General."  For 
the  purpose  of  afforduig  prompt  interpretations  of  all  wage  orders 
issued  by  the  Dkector  General,  the  duties  and  authority  of  the  Board 
of  Jlailroad  Wages  and  Working  Conditions  are  hereby  extended  to 
include  investigations  and  recommendations  to  the  Director  General 
of  mterpretations  of  all  such  wage  orders,  when  requested  to  do  so 
by  the  Director  of  the  Division  of  Labor, 

It  should  be  understood  by  railroad  employees  that  it  is  imprac- 
ticable to  give  interpretation  on  ex-parte  statement  to  the  thousands 
who  request  infomiation  as  to  the  manner  in  which  w^age  orders  should 
be  apphed  in  individual  cases.     Operating  officials  of  the  railroads  are 


240 

required  to  place  wage  orders  in  effect  fairly  and  equitably,  and  should 
differences  of  opinion  arise  necessitating  a  formal  interpretation,  the 
matter  will  he  disposed  of  in  the  f  ollowmg  manner : 

"When  a  wage  order  is  placed  in  effect  in  a  manner  with  which  an 
emploj^ee,  or  the  employee's  committee  disagrees,  a  joint  statement 
quoting  the  language  of  the  wage  order,  and  including  the  contentions 
of  employees  and  the  contentions  of  officials,  signed  by  the  represent- 
atiA-es  of  the  employees  and  the  officials,  will  be  transmitted  to  tlie 
Director  of  Labor,  who  will  record  and  transmit  same  to  the  Board 
of  Raihoad  Wages  and  Working  Conditions,  which  will  promptly 
investigate  and  make  recommendation  to  the  Director  General. 
Upon  the  receipt  of  mterpretation  from  the  Director  General,  the 
Director  of  Labor  will  transmit  such  interpretation  to  the  Hallway 
Boards  of  Adjustment  for  their  information  and  guidance,  in  the 
apphcation  of  such  interpretation  to  existing  conditions,  or  to  ques- 
tions arismg  from  the  incorporation  of  the  order  as  so  interpreted 
into  existing  agreements  on  all  raihoads  under  Federal  control.  As 
occasion  demands,  all  interpretations  will  be  printed  and  given 
general  pubhcity,  for  the  purpose  of  communicating  the  information 
to  all  concerned,  and  thus  avoiding,  the  necessity  of  duplication  of 
in  terp  ret  ations . 

On  and  after  September  1st,  1918,  any  disagreement  between  the 
employees  and  the  officials,  over  the  apphcation  of  any  vrage  order, 
will  be  submitted  to  the  Director  of  Labor,  as  outlined  above,  but  in 
order  promptly  to  dispose  of  all  requests  for  interpretations  previously 
presented  to  the  Division  of  Labor,  or  to  the  Boards  of  Adjustment, 
such  requests  will  be  immediately  recorded  and  transmitted  to  the 
Board  of  Kailroad  Wages  and  Working  Conditions  by  the  Director 
of  Labor. 

Nothing  herem  contained  revokes  authority  granted  to  the  Division 
of  Labor  of  Railway  Boards  of  Adjustment  in  dotermuiing  disputes 
aiising  m  connection  with  the  apphcation  of  interpretations  of  wage 
orders  to  existing  concUtions,  or  in  connection  with  the  incorporation 
of  such  mterpretations  into  existing  agreements. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Supplement  No.  6-A  to  Gexehal  Ordek  Xo.  27. 

Washington,  D.  C,  Octohcr  28,  191S. 

Supplement  Xo.  G  to  General  Order  Xo.  27  is  hereby  amended  by 
adding  thereto  the  following: 

Where  differences  of  opinion  arise  necessitating  a  formal  interpre- 
tation of  any  Wage^Order  issued  by  the  Director  General  and  where 


241 

the  question  involved  is  of  general  application  and  covers  a  large 
number  of  railroads,  application  for  such  interpretation  may  be 
made  either  by  a  Regional  Director  or  by  the  chief  executive  of  the 
railroad  organization  representing  the  class  of  employees  involved 
or  the  Chairman  of  any  Railway  Board  of  Adjustment  or  the  Di- 
rector of  the  Division  of  Labor.  Such  application  shall  be  sent  to  the 
office  of  the  Director  of  Labor  and  he  will  record  and  transmit  it 
to  the  Board  of  Railroad  "Wages  and  "Working  Conditions,  which  will 
promptly  investigate  and  nuike  recommendation  to  the  Director 
General.  Upon  the  receipt  of  interpretation  from  the  Director 
General,  the  Director  of  Labor  will  send  such  interpretation  to  the 
Railway  Boards  of  Adjustment  for  their  information  and  guidance. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Supplement  No.  7  to  General  Order  No.  27. 

Washington,  D.  C,  September  1,  1918. 
Eilective  September  1,  1918,  superseding  General  Order  No.  27, 
and  in  heu  thereof,  as  to  the  employees  herein  named,  the  following 
rates  of  pay  and  rules  for  overtime  and  working  conditions  for  all 
clerical  forces  in  all  departments,  and  for  certain  employees  m  sta- 
tions, storage  or  terminal  warehouses,  docks,  storehouses,  shops,  and 
yards,  upon  railroads  under  Federal  control,  are  hereby  ordered: 

Article   I. — Rates  of  Pay. 

(a)  For  all  employees  who  devote  a  majority  of  their  time  to 
clerical  work  of  any  description,  including  train  announcers,  gate- 
men,  checkers,  baggage  and  parcel  room  employees,  train  and  engine 
crew  callers,  and  the  operators  of  all  office  or  station  equipment  de- 
vices (excepting  such  as  come  Avithin  the  scope  of  existing  agree- 
ments or  those  hereafter  negotiated  with  the  railroad  telegraphers), 
estabUsh  a  basic  minimum  rate  of  sixty-two  dollars  and  fifty  cents 
($62.50)  per  month;  and  to  this  basic  miaimum  rate  and  aU  rates  of 
sixty- two  dollars  and  fifty  cents  ($62.50)  and  above,  in  efi^ect  as  of 
January  1,  1918,  prior  to  the  application  of  General  Order  No.  27, 
add  twenty-five  (25)  dollars  per  month,  establishing  a  minimum 
rate  of  eighty-seven  dollars  and  fifty  cents  ($87.50)  per  month. 

(&)  This  order  shaU  apply  to  chief  clerks,  foremen,  subforcmen, 
and  other  similar  supervisory  forces  of  employees  herein  provided  for. 

(c)  For  office  boys,  messengers,  chore  boys,  and  other  emploj^ees 
under  eighteen  (18)  years  of  age  fiUing  similar  positions,  and  sta- 
tion attendants,  estabhsh  a  basic  minimum  rate  of  twenty  (20) 
dollars  per  month,  and  to  tliis  basic  minimum  rate  and  all  rates  of 

105889°— 19 -16 


242 

twenty  (20)  dollars  per  month  and  above,  in  effect  as  of  January  1, 
1918,  prior  to  the  application  of  General  Order  No.  27,  add  twenty- 
five  (25)  dollars  per  month,  establishing  a  minimum  rate  of  forty- 
five  (45)  dollars  per  month. 

(d)  For  all  other  employees  not  otherwise  classified,  such  as  jani- 
tors, elevator  and  telephone  switchboard  operators,  office,  station,  and 
warehouse  watchmen,  establish  a  basic  minimum  rate  of  forty-five 
(45)  dollars  per  month,  and  to  this  basic  minimim  rate  and  all  rates 
of  forty-five  (45)  dollars  per  month  and  above,  in  effect  as  of  Janu- 
ary 1,  1918,  prior  to  the  application  of  General  Order  No.  27,  add 
twenty-five  (25)  dollars  per  month,  establishing  a  minimum  rate  of 
seventy  (70)  dollars  per  month. 

(e)  The  same  increases  provided  for  m  sections  (a),  (b),  (c),  and 
(d)  of  this  article,  shall  apply  to  employees  named  therein  paid  on 
any  other  basis. 

If)  The  wages  for  new  positions  shall  be  in  conformity  with  the 
wage  for  positions  of  similar  kind  or  class  where  created. 

Article    II. — Stationary    Engineers     (Steam),    Firemen,    and 

PoWERrHoUSE    OiLERS. 

(a)  For  all  stationary  engineers  (steam),  establish  a  basic  mini- 
mum rate  of  eighty-five  (85)  dollars  per  month,  and  to  this  basic 
minimum  rate,  and  all  rates  of  eighty-five  (85)  dollars  and  above,  in 
effect  as  of  January  1,  1918,  prior  to  the  application  of  General  Order 
No.  27,  add  twenty-five  (25)  dollars  per  month,  establishmg  a  mini- 
mum rate  of  one  hundred  ten  (110)  dollars  per  month. 

(by  This  order  shall  apply  to  chief  stationary  engineers. 

(c)  For  all  stationary  firemen  and  power-house  oilers,  establish  a 
basic  minimum  rate  of  sixty-five  (65)  dollars  per  month,  and  to  this 
basic  minimum  rate,  and  all  rates  of  sLxty-five  (65)  dollars  and 
above,  in  effect  as  of  January  1,  1918,  prior  to  the  application  of 
General  Order  No.  27,  add  twenty-five  (25)  dollars  per  month,  es- 
tablishing a  minimum  rate  of  ninety  (90)  dollars  per  month. 

Article  III. — Locomotive  Boiler  Washers. 

For  all  locomotive  boiler  washers  who  were  on  January  1,  1918, 
prior  to  the  application  of  General  Order  No.  27,  receiving  less  than 
twenty-six  (26)  cents  per  hour,  establish  a  basic  minimum  rate  of 
twenty-sLx  (26)  cents  per  hour,  and  to  this  basic  minimum  rate,  and 
all  hourly  rates  of  twenty-six  (26)  cents  and  above,  add  twelve  (12) 
cents  per  hour,  estabHshing  a  minimum  rate  of  tliirty-eight  (38) 
cents  per  hour,  provided  that  the  maximum  shall  not  exceed  fifty 
(50)  cents  per  hour. 


243 
Article  IV. — Power  Transfer  and  Turntable  Operators. 

For  all  operators  of  power-driven  transfer  and  turntables  who 
were  on  January  1,  1918,  prior  to  the  application  of  General  Order 
No.  27,  receiving  less  than  twenty-one  (21)  cents  per  hour,  establish 
a  basic  minimum  rate  of  twenty-one  (21)  cents  per  hour,  and  to  this 
basic  minimum  rate,  and  all  hourly  rates  of  twenty-one  (21)  cents 
and  above,  add  twelve  (12)  cents  per  hour,  estabhshing  a  minimum 
rate  of  thu-ty- three  (33)  cents  per  hour,  provided  that  the  maximum 
shall  not  exceed  forty-five  (45)  cents  per  hour. 

Article  V. — Shop,  Roundhouse,  Station,  Storehouse,  and 
Warehouse  Employees  (Except  Employees  Provided  for  in 
Harbor  Awards). 

(a)  For  all  laborers  employed  in  and  around  shops,  roundhouses, 
stations,'  storehouses,  and  warehouses  (except  employees  provided 
for  in  harbor  awards),  such  as  engine  watchmen  and  wipers,  fire 
builders,  ash-pit  men,  boiler  washer  helpers,  flue  borei-s,  truckei-s, 
stowers,  shippers,  coal  passers,  coal-chute  men,  etc.,  who  were  on  Jan- 
uary 1,  1918,  prior  to  the  application  of  General  Order  No.  27,  receiv- 
ing less  than  nineteen  (19)  cents  per  hour,  establish  a  basic  minimum 
rate  of  nineteen  (19)  cents  per  hour,  and  to  this  basic  minimum  rate, 
and  all  hourly  rates  of  nmeteen  (19)  cents  and  above,  add  twelve 
(12)  cents  per  hour,  establishing  a  minimum  rate  of  thirty-one  (31) 
cents  per  hour,  provided  that  the  maximum  shall  not  exceed  forty- 
three  (43)  cents  per  hour. 

(b)  For  all  common  labor  in  the  departments  herein  referred  to 
and  not  otherwise  provided  for,  who  were  on  January  1,  1918,  prior 
to  the  application  of  General  Order  No.  27,  receiving  less  than  six- 
teen (16)  cents  per  hour,  establish  a  basic  minimum  rate  of  sixteen 
(16)  cents  per  hour,  and  to  this  basic  minimum  rate  and  all  hourly 
rates  of  sixteen  (16)  cents  and  above,  add  twelve  (12)  cents  per 
hour,  estabhshing  a  minimum  rate  of  twenty-eight  (28)  cents  per 
hour,  provided  that  the  maximum  shall  not  exceed  forty  (40)  cents 
per  hour. 

Article  VI. — Monthly,  Weekly,  or  Daily  Rates. 

For  aU  monthly,  weekly,  or  daily  rated  employees  in  the  depart- 
ments herein  referred  to  and  not  otherwise  provided  for,  increase  the 
rates  in  effect  as  of  January  1,  1918,  prior  to  the  apphcation  of  Gen- 
eral Order  No.  27,  on  the  basis  of  twenty-five  (25)  dollars  per  month. 

Article  VII. — ^Maximum  Monthly  Wage. 

No  part  of  the  increases  provided  for  in  this  order  shall  apply  to 
establish  a  salary  in  excess  of  two  hundred  fifty  (250)  doUai-s  per 
month. 


244 

Article  VIII. — Preservation  of  Rates. 

(a)  The  minimum  rates,  and  all  rates  in. excess  thereof,  as  herein 
established,  and  higher  rates  which  hare  been  authorized  since  Jan- 
uary 1,  1918,  except  by  General  Order  No.  27,  shall  be  preserved. 

(b)  Employees  temporarily  or  permanently  assigned  to  higher- 
rated  positions  shall  receive  the  higher  rates  while  occupying  such 
positions;  employees  temporarily  assigned  to  lower-rated  positions 
shall  not  have  their  rates  reduced. 

Article  IX. — Exception. 

The  provisions  of  this  order  will  not  apply  in  cases  where  amounts 
less  than  thirty  (30)  dollai-s  per  month  are  paid  to  individuals  for 
special  service  which  only  takes  a  portion  of  their  time  from  outside 
employment  or  business. 

*  Article  X. — Hours  of  Service. 
Eight  (8)  consecutive  hours,  exclusive  of  the  meal  period,  shall 
constitute  a  day's  work. 

Article  XI. — Overtime  and  Calls. 

(a)  Where  there  is  no  existing  agreement  or  practice  more  favor- 
able to  the  employees,  overtime  shall  be  computed  for  the  ninth  and 
tenth  hour  of  continuous  service,  pro  rata  on  the  actual  minute  basis, 
and  thereafter  at  the  rate  of  time  and  one-half  time.  Even  hours 
wiU  be  paid  for  at  the  end  of  each  pay  period;  fractions  thereof  will 
be  carried  forward. 

(h)  When  notified  or  called  to  work,  outside  of  estabhshed  hours, 
employees  will  be  paid  a  minimum  allowance  of  three  hours. 

(c)  Employees  Avill  not  be  required  to  suspend  work  during  regular 
hours  to  absorb  overtime. 

.Article  XII. — Promotion  and  Seniority. 

(a)  Promotions  shall  be  based  on  ability,  merit,  and  seniority, 
ability  and  merit  being  sufficient,  seniority  shall  prevail,  except, 
however,  that  this  provision  shall  not  apply  to  the  pei-sonal  office 
forces  of  such  officers  as  superintendent,  train  master,  division 
engineer,  master  mechanic,  general  freight  or  passenger  agent,  or 
their  superiors  iu  rank  and  executive  officers.  The  management 
shall  bo  the  judge,  subject  to  an  appeal,  as  provided  in  Article  XIII. 

(b)  Seniority  will  be  restricted  to  each  classified  department  of 
the  general  and  other  offices  and  of  each  superintendent's  or  master 
mechanic's  division. 

(c)  Seniority  rights  of  employees  referred  to  herein,  to: 

(1)  New  positions, 

(2)  Vacancies  wtU  be  governed  by  paragraphs  (o)  and  (6) 

of  this  article. 


245 

(d)  Employees  declining  promotion  shall  not  lose  their  seniority. 

(e)  Employees  accepting  promotion  will  be  allowed  thu-ty  (30) 
days  in  which  to  qualify,  and  failing,  will  be  returned  to  former 
position  without  loss  of  seniority. 

(/)  New  positions  or  vacancies  will  be  promptly  bulletined  for  a 
period  of  five  (5)  days  in  the  departments  where  they  occur.  Em- 
ployees desiring  such  positions  will  file  their  applications  with  the 
designated  official  ^\dthin  that  time,  and  an  appointment  will  be 
made  within  ten  (10)  days  thereafter.  Such  position  or  vacancy 
may  be  filled  temporarily  pending  an  assignment.  .The  name  of  the 
appointee  will  immediately  thereafter  be  posted  where  the  position 
or  vacancy  was  bulletined. 

(g)  In  reducing  forces,  seniority  shall  govern.  When  forces  are 
iQcreased,  employees  will  be  returned  to  the  service  and  positions 
formerly  occupied,  in  the  order  of  then  seniority.  Employees  de- 
siring to  avail  themselves  of  this  rule  must  file  their  names  and  ad- 
dresses with  the  proper  official.  Employees  failmg  to  report  for  duty 
or  give  satisfactory  reason  for  not  doing  so  within  seven  (7)  days  from 
date  of  notification  will  be  considered  out  of  the  service. 

(h)  A  seniority  roster  of  all  employees  in  each  classified  depart- 
ment, who  have  been  in  the  service  six  (6)  months  or  more,  showing 
name,  date  of  entering  the  service,  and  the  date  of  each  promotion  or 
change,  will  be  posted  in  a  place  accessible  to  those  affected. 

(i)  The  roster  wiU  be  revised  and  posted  in  January  of  each  year, 
and  shall  be  open  to  correction  for  a  period  of  sixty  (60)  days  from 
date  of  posting,  on  presentation  of  proof  of  error  by  an  employee  or 
his  representative.  The  duly  accredited  representative  of  the  em- 
ployee shall  be  furnished  with  a  copy  of  roster  upon  written  request. 

Article  XIII. — Discipline  and  Grievances. 

(a)  An  employee  disciplined,  or  who  considers  himself  unjustly 
treated,  shall  have  a  fair  and  impartial  hearing,  provided  written 
request  is  presented  to  his  immediate  superior  within  five  (5)  days 
of  the  date  of  the  advice  of  discipline,  and  the  hearing  shall  be 
granted  within  five  (5)  days  thereafter. 

(b)  A  decision  wiU  be  rendered  withm  seven  (7)  days  after  the 
completion  of  hearing.  If  an  appeal  is  taken,  it  must  be  filed  with 
the  next  higher  official  and  a  copy  furnished  the  official  whose 
decision  is  appealed  within  five  (5)  days  after  date  of  decision. 
The  hearing  and  decision  on  the  appeal  shall  be  governed  by  the  time 
limits  of  the  preceding  section. 

(c)  At  the  hearing  or  on  the  appeal,  the  employee  may  be  as- 
sisted by  a  committee  of  employees,  or  by  one  or  more  duly  accredited 
representatives. 


246 

(d)  The  right  of  appeal  by  employees  or  representatives,  in  regu- 
lar order  of  succession  and  in  the  manner  prescribed  up  to  and 
inclusive  of  the  highest  official  designated  by  the  railroad,  to  whom 
appeals  may  be  made,  is  hereby  established. 

(e)  An  employee  on  request  will  be  given  a  letter,  stating  the  cause 
of  discipline.  A  transcript  of  evidence  taken  at  the  investigation  or 
on  the  appeal  will  be  furnished  on  request  to  the  employee  or  repre- 
sentative. 

(/)  If  the  final  decision  decrees  that  charges  against  the  employee 
were  not  sustained,  the  record  shall  be  cleared  of  the  charge;  if  sus- 
pended or  dismissed,  the  employee  shall  be  returned  to  former  posi- 
tion and  paid  for  all  time  lost. 

(g)  Committees  of  employees  shall  be  granted  leave  of  absence  and 
free  transportation  for  the  adjustment  of  differences  between  the 
railroad  and  the  employees. 

Article  XIV.^Rules  for  Application  of  this  Order. 

(a)  It  is  not  the  intention  of  this  order  to  change  the  number  of 
days  per  month  for  monthly  paid  employees.  The  increases  per 
month  provided  for  herein  shall  apply  to  the  same  number  of  days 
per  month  which  were  worked  as  of  January  1,  1918. 

(b)  The  pay  of  female  employees,  for  the  same  class  of  work,  shall 
be  the  same  as  that  of  men,  and  their  working  conditions  must  be 
healthful  and  fitted  to  their  needs.  The  laws  enacted  for  the  gov- 
ernment of  their  employment  must  be  observed. 

Article  XV. — Interpretation  of  this  Order. 

The  rates  of  pay  and  rules  herein  established  shall  be  incorporated 
into  existing  agreements  and  into  agreements  which  may  be  reached 
in  the  future,  on  the  several  railroads;  and  should  dift'erences  arise 
between  the  management  and  the  employees  of  any  of  the  railroads 
as  to  such  incorporation,  intent,  or  apphcation  of  this  order  prior  to 
the  creation  of  additional  railway  boards  of  adjustment,  such  ques- 
tions of  difference  shall  be  referred  to  the  Director  of  the  Division 
of  Labor  for  decision,  when  properly  presented,  subject  always  to 
review  by  the  Director  General. 

Agreements  or  practices,  except  as  changed  by  this  order,  remain 

ill  effect. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


247 

Interpretation   No.   1   to   Supplement  No.   7  to   General  Order 

No.  27. 

overtime  monthly,  weekly  or  daily  paid  employees. 

Washington,  D.  C.^  Novemher  23^  1918. 

Article  I. 

Eight  consecutive  hours,  exchisive  of  the  meal  period,  constituting 
a  day's  work  from  the  effective  date  of  Supplement  No.  7  to  General 
Order  No.  27,  the  increases  provided  for  therein  and  applicable  to 
monthly,  weekly  and  daily  paid  employees,  specified  in  Articles  I, 
II  and  VI  of  Supplement  No.  7,  are  based  upon  the  recognized  num- 
ber of  working  days  constituting  a  calendar  year  (including  Sun- 
days and  or  holidays  where  they  have  been  considered  a  part  of  the 
employee's  assignment),  and  the  rates  of  pay  in  effect  January  1, 
1918,  prior  to  the  application  of  General  Order  No.  27,  exclusive  of 
overtime.  The  following  examples  illustrate  the  method  to  be  used 
in  establishing  the  straight  time  hourly  rate  as  the  basis  of  payment 
for  overtime  service: 

Example  (o)  Employees  working  thirty  clays  per  month  at  a  wage  amount- 
ing to  $60.00  per  month  on  January  1,  1918,  prior  to  the  application  of  General 
Order  No.  27,  would  on  September  1,  1918,  under  Supplement  No.  7,  Article  I — 
(a)  automatically  advance  to  the  basic  rate  of  $62.50  per  month,  plus  $25.00 
increase,  establishing  thp  rate  of  $87.50  or  $1,050.00  per  year.  In  computing 
the  pro  rata  rate  per  hour  for  overtime  pay  for  monthly,  weekly  or  daily  paid 
(Mnployees,  take  the  number  of  working  days  constituting  a  calendar  year,  mul- 
tiply by  eight  and  divide  the  annual  salary  by  the  total  hours,  exclusive  of 
overtime  and  disregarding  time  absent  on  vacations,  sick  leave,  holidays,  or 
for  any  other  causes.  In  determining  the  hourly  rate,  fractions  less  than  one- 
fourth  of  one  cent  shall  be  as  one-fourth  of  one  cent;  over  one-fourth  and 
under  one-half,  as  one-half  cent;  over  one-half  and  under  three-fourths,  as 
three-fourths ;  over  three-fourths,  as  one  cent. 

Example   (h)   Yearly  wage  $1,050.00-^2.880  hours=36.45  or  36.5^  per  hour. 

Example   (c)   Yearly  wage  $1,200.00^2,880  hours=41.66  or  41.75«;^  per  hour. 

Example   (d)   Yearly  wage  $1,300.00^2,880  hours=45.14  or  45.25^  per  hour. 

Example  (e)  Yearly  wage  $1,500.00-^2,880  hours=52.1  or  52.25^  per  hour. 

Example   (/)   Yearly  wage  $1,800.00-^2,880  hours=62.5^  per  hour. 

Note. — It  is  to  be  understood  that  2,880  hours  is  illustrative  only  ;  the  hours  per 
year  will  vary  as  the  assigned  work  days  per  year  vary. 

Article  II. 

On  February  21,  1918,  the  Director  General  issued  General  Order 
No.  8,  paragraph  3  thereof  reading  as  follows : 

The  broad  question  of  wages  and  hours  will  be  passed  upon  and  reported 
to  the  Director  General  as  promptly  as  possible  by  the  present  Railroad  Wage 
Commission.  Pending  a  disposition  of  these  matters  by  the  Director  General, 
all  requests  of  employees  involving  revisions  of  schedules  or  general  changes 


248 

ill  conditions  affecting  wages  and  hours  will  be  held  in  abeyance  by  both  the 
managers  and  employees.  Wages,  when  determined  upon,  will  be  made  re- 
troactive to  January  1,  1918,  and  adjusted  accordingly.  Matters  of  controversy 
arising  under  interpretations  of  existing  wage  agreements  and  other  matters 
not  relating  to  wages  and  hours  will  take  their  usual  course,  and  in  the  event 
of  inability  to  reach  a  settlement,  will  be  referred  to  the  Director  General. 

If  employees  coming  ■within  the  scope  of  Supplement  No.  7  to 
General  Order  No.  27,  were  paid  a  punitive  rate  of  overtime  after 
tlie  regular  day's  -work,  Sundays  and  or  holidays  prior  to  February 
21,  1918,  the  same  conditions  should  apply  on  the  eight  hour  basis. 
Any  punitive  overtime  rate  established  by  employees  under  this 
interpretation  since  February  21,  1918,  except  as  established  by  the 
Director  General  is  unauthorized  and  can  not  be  recognized. 

Example  (a)  Employees  working  ten  hours  per  day  .January  1,  1918,  prior  to 
the  application  of  General  Order  No.  27.  and  who  were,  prior  to  February  21, 
1918,  paid  at  the  rate  of  time  and  one-half  time  for  ovetime,  should  be  paid  as 
follows : 

S.  a.  m.  to  12  noon 4  hours'  work 

12  noon  to  1  p.  m 1  hour  for  meal  excluded 

1  p.  m.  to  5  p.  m 4  hours'  Avork 

5  p.  m.  to  7  p.  m 2  hours  at  rate  of  time  and  one-half 

time. 

Elapsed  time 11  hours 

Time  for  meal 1  hour  deducted 

Overtime 2  hours 

Total  time  to  be  paid  for 11  hours 

Example  (6)  Overtime  commences  immediately  following  the  eighth  consecu- 
tive hour  of  continuous  service,  after  deducting  the  meal  period.  On  the  basis 
of  pro  rata  time  for  the  ninth  and  tenth  hour. 

8  a.  m.  to  12  noon 4  hours 

12  noon  to  1  p.  in 1  hour  for  meal  excluded 

1  p.  m.  to  5  p.  m 4  hours'  work 

r»  p.  m.  to  7  p.  m 2  hours'  overtime,  pro  rata  rate 

7  p.  m.  to  9  p.  m 2    hours' overtime,  1*  times  pro  rata  rate 

Elapsed  time !•?  hours 

Time  of  meal 1   hour  deducted 

Continuous  service_l 12  hours 

Total  time  to  be  paid  for 13  hours 

Examjile  (r)   Employees  working  straight  through  eight  consecutive  hours. 
G  a.  ra.  to  2  p.  m 8  hours'  work 

2  p.  m.  to  4  p.  m 2  hour.s'  overtime,  prn  rata  rate 

4  p.  m.  to  6  p.  m 2  hours'  overtime,  1*  times  pro  rata  rate 

Elapsed   time 12  liours 

Continuous   service 12  hours 

Total   time   to  be  paid   for 13  hours 


249 
Article  III. — Hourly  Kates. 

The  employees  coming  under  the  provisions  of  Article  III,  IV  and 

V  of  Supplement  No.  7  to  General  Order  No.  27,  who  were  on  Jan- 
uary 1,  1918,  prior  to  the  application  of  General  Order  No.  27,  paid 
on  a  basis  of  ten  hours  or  more  to  constitute  a  day,  for  whom  hourly 
rates  have  been  established,  as  per  the  above  specified  articles,  shall, 
on  and  after  September  1.  1918,  the  effective  date  of  Supplement 
No.  7.  receive  one-eighth  of  the  w-ages  received  for  ten  hours  on 
January  1,  1918.  prior  to  the  application  of  General  Order  No.  27, 
as  their  basic  hourly  rale,  to  which  shall  be  added  twelve  cents  per 
hour,  provided  the  hourly  rate  thus  obtained  shall  not  exceed  the 
maximum  rate  specified  in  the  respective  articles. 

Example  (a)  Employees  coming  iinder  the  provisions  of  Articles  III,  IV  and 

V  of  Supplement  No.  7.  to  General  Order  No.  27,  on  a  ten-hour  basis,  rate  $2..50 
per  day ;  one-eighth  of  250  equals  31.25  cents  per  hour,  adding  the  increase  of 
twelve  cents  produces  a  rate  of  43.25  cents  under  Articles  III  and  IV.  Under 
Article  V — (a),  the  rate  v\'ould  revert  to  the  maximum  of  forty-three  cents; 
under  Article  V — (b),  the  rate  would  revert  to  the  maximum  of  forty  cents. 

Note. — To  determine  the  hourly  rate  to  be  paid  employees  on  the  hourly  basis  and 
for  whom  ten  hours  or  more  were  the  established  hours  of  service,  use  the  method  and 
example  (a)  of  above  Article  III ;  for  classes  specified  in  Supplement  No.  7,  Articles 
III,  IV  and  V,  working  less  than  ten  hours,  and  over  eight  hours,  one-eighth  of  the 
wage  received  for  the  number  of  hours  recognized  as  a  day's  work. 

Article  IV. — Pat  for  Calls. 

Employees  who  are  notified  or  called  to  work  outside  the  eight 
consecutive  hours,  exclusive  of  the  meal  period  and  continuous 
service,  constituting  their  regular  assignment,  shall  be  paid  a  mini- 
mum allowance  of  three  hours  for  two  hours  w^ork  or  less;  if  held 
over  two  hours,  time  and  one-half  will  be  paid,  computed  on  the 
minute  basis. 

Example  (a) 

5  a.  m.  to  12  noon 4    hours'  work 

12  noon  to  1  p.   ra 1     hour  for  meal  excluded 

1  p.  m.  to  5  p.   m 4    hours'  Avork 

6  p.  m.  to  7.30  p.  m 1*  hours'  overtime,  14  times  pro  rata  rate 

Elapsed   time llA  hours 

Time   for    meal 1     hour 

Break  in  continuous  servif-e —        1  hour 

Time   for    call 3  hours,  minimtim  guarantee 

Total  time  to  he  paid  for 11     hours 

Article  V. 

Exclusive  of  employees  whose  regular  assignment  includes  Sundays 
and  or  holidays,  employees  notified  or  called  to  work  on  Sundays 
and  or  holidays,  will  be  paid  not  less  than  the  minimum  allowance 


250 

of  three  hours,  and  where  210  existing-  agreement  or  practice  is  more 
favorable,  such  employees  will  be  paid  as  per  Examples  (h)  and  (c) 
of  Article  II. 

Article  VI. 

Payment  of  overtime  at  a  rate  in  excess  of  pro  rata  will  be  com- 
putecl  from  and  added  to  the  pro  rata  rate. 

Article  VII. 

Unless  acceptable  to  a  majority  of  employees  in  a  department  or 
subdivision  thereof,  the  meal  period  shall  not  be  less  than  thirty 
minutes  or  more  than  one  hour. 

Article  VIII. 

Where  unjustifiable  inequalities  develop  or  exist  in  the  rates  of 
pay  for  relatively  the  same  service  and  responsibility,  as  between 
employees  of  the  same  class  within  the  respective  groops,  as  specified 
in  Supplement  No.  7  to  General  Order  No.  27,  the  Kegional  Directors 
are  hereby  authorized  to  establish  uniform  rates  of  pay  by  zones  or 
districts  throughout  their  respective  regions,  under  the  following 
conditions : 

(a)  The  maximum  rates  establiiihed  by  Supplement  No.  7  to  General  Order 
No.  27  must  not  be  exceeded. 

(h)  Rates  established  by  Supplement  No.  7  to  General  Order  No  27  must  not 
be  reduced. 

(c)  Tlie  specified  differentials  in  the  established  maximum  rates  for  hourly 
workers  to  be  preserved. 

id)  All  rates  herein  provided  for  shall  be  filed  by  the  Regional  Directors  with 
the  Bo»rd  of  Railroad  Wages  and  Working  Conditions. 

W.  G.  McAdoo, 
I) hector  Geiieral  of  Railroads. 


IxTERrRETATioN  No.   2   TO   vSl^pple:mext  Xo.   T   to   General  Order 

Xo.  27. 

AVashin(;tox,  D.  C,  Novemher  30, 1918. 

Question. — Shall  employees  coming  under  the  provisions  of  para- 
graph (a).  Article  V,  Supplement  No.  7  to  General  Order  No.  27, 
paid  on  a  tonnage  or  piecework  basis  and  earning  in  excess  of  43 
cents  per  hour  (the  maximum  rate  established)  receive  any  portion 
of  the  increase  provided  for,  if  thereby  such  increase  would  estali- 
lish  a  rate  in  excess  of  48  cents  per  hour? 

Decision. — Paragraph  (2).  Article  V,  of  Supplement  No.  7  to 
General  Order  No.  27  specifically  states:  "Provided  that  the  maxi- 
mum shall  not  exceed  43  cents  per  hour.  "     P'>mployees  paid  on  a 


251 

tonnage  or  piecework  basis  whose  average  hourly  earnings,  per  day 
period,  equal  43  or  more  cents  per  hour  are  therefore  not  entitled 
to  any  portion  of  the  increase,  but  are  guaranteed  not  less  than  43 
cents  per  hour. 

The  provisions  of  paragraph  (2),  Article  VIII.  Supplement  Xo. 
7  to  General  Order  Xo.  27.  protects  higher  rates  and  is  to  be  ob- 
served. 

W.  G.  McAdoo. 
Director  General  of  Railroads. 


Supplement  No.  8  to  General  Order  N"o.  27. 

Washington,  D.  C,  September  1,  1918. 
Effective  September  1,  1918,  superseding  General  Order  27,  and  in 
lieu  thereof,  as  to  the  employees  herein  named,  the  following  rates  of 
pay  and  rules  for  overtime  and  working  conditions  for  all  employees 
in  the  Maintenance  of  Way  Department  (except  mechanics  and 
helpers  where  provided  for  in  Supplement  No.  4,  General  Order  No. 
27,  and  clerical  forces),  upon  railroads  under  Federal  control  are 
hereby  ordered : 

Article  I. — Rates  of  Pay. 

(a)  For  all  building,  bridge,  painter,  signal  and  construction, 
mason  and  concrete,  water  supply,  maintainer,  and  plumber  fore- 
men, establish  a  basic  minimum  rate  of  ninety  (90)  dollars  per 
month,  and  to  this  basic  minimum  rate  and  all  rates  of  ninety  (90) 
dollars  per  month  and  above,  in  effect  as  of  January  1,  1918,  prior  to 
the  appHcation  of  General  Order  No.  27,  add  twenty-five  (25)  dollars 
per  month,  establishing  a  minimum  rate  of  one  hundred  fifteen  (115) 
dollars  per  month. 

(&)  For  aU  assistant  building,  bridge,  painter,  signal  and  con- 
struction, mason  and  concrete,  water  supply,  maintainer,  and 
plumber  foremen,  and  for  coal  wharf,  coal  chute,  and  fence  gang 
foremen;  pile  driver,  ditching  and  hoisting  engineers,  and  bridge  in- 
spectors, establish  a  basic  minimum  rate  of  eighty  (80)  dollars  per 
month,  and  to  tliis  basic  minimum  rate  and  aU  rates  of  eighty  (80) 
doUars  per  month  and  above,  in  effect  as  of  January  1,  1918,  prior 
to  the  application  of  General  Order  No.  27,  add  twenty-five  (25) 
dollars  per  month,  establishing  a  minimum  rate  of  one  hundred  five 
(105)  dollars  per  month. 

(c)  For  all  track  foremen,  establish  a  basic  minimum  rate  of 
seventy-five  (75)  dollars  per  month,  and  to  this  basic  minimum  rate 
and  all  rates  of  seventy-five  (75)  dollars  per  month  and  above,  in 
effect  as  of  January  1,   1918,  prior  to  the  appHcation  of  General 


252 

Order  No.  27,  add  twenty-live  (25)  dollars  per  month,  establishing  a 
minimum  rate  of  one  hundred  (100)  dollars  per  month. 

(d)  Rates  of  pay  for  all  assistant  track  foremen  will  be  five  (5) 
cents  per  hour  in  excess  of  the  rate  paid  laborers  whom  they  super- 
vise. 

(e)  For  all  mechanics  in  the  Maintenance  of  Way  and  Bridge  and 
Building  Departments,  where  not  provided  for  in  Supplement  No. 
4  to  General  Order  No.  27,  who  were  on  January  1,  1918,  prior  to 
the  application  of  General  Order  No.  27,  receiving  less  than  forty 
(40)  cents  per  hour,  establish  a  basic  minimum  rate  of  forty  (40) 
cents  per  hour,  and  to  this  basic  minimum  rate  and  all  rates  of  forty 
(40)  cents  per  hour  and  above  add  thirteen  (13)  cents  per  hour, 
establishing  a  minimum  rate  of  fifty- three  (53)  cents  per  hour. 

(/)  For  helpers  to  all  mechanics  in  the  Maintenance  of  Way  and 
Bridge  and  Building  Departments,  where  not  provided  for  in  Sup- 
plement No.  4  to  General  Order  No.  27,  who  were  on  January  1,  1918, 
prior  to  the  application  of  General  Order  No.  27,  receiving  less  than 
thirty  (30)  cents  per  hour,  establish  a  basic  minimum  rate  of  thirty 
(30)  cents  per  hour,  and  to  this  basic  minimum  rate  and  all  hourly 
rates  of  thirty  (30)  cents  per  hour  and  above  add  thirteen  (13)  cents 
per  hour,  establishing  a  minimum  rate  of  forty- three  (43)  cents 
per  hour. 

(g)  For  track  laborers  and  all  other  classes  of  maintenance-of- 
way  labor  not  herein  named,  who  on  January  1,  1918,  prior  to  the 
application  of  General  Order  No.  27,  were  receiving  less  than  six- 
teen (16)  cents  per  hour,  establish  a  basic  minimum  rate  of  sixteen 
(16)  cents  per  hour,  and  to  this  basic  minimum  rate  and  all  hourly 
rates  of  sixteen  (16)  cents  per  hour  and  above  add  twelve  (12)  cents 
per  hour,  establishing  a  minimum  rate  of  twenty-eight  (28)  cents 
per  hour,  provided  that  the  maximum  shall  not  exceed  forty  (40) 
cents  per  hour. 

(h)  For  drawbridge  tendere  and  assistants,  pile  driver,  ditching 
and  hoisting  firemen,  pumper  engineers  and  pumpei-s,  crossing  watch- 
men or  flagmen,  lamp  lighters  and  tenders,  add  to  the  rate  in  effect 
as  of  January  1,  1918,  prior  to  the  application  of  General  Order  No. 
27,  twenty-five  (25)  dollai-s  per  month. 

(i)  The  wages  for  new  positions  shall  be  in  conformity  with  the 
wages  for  positions  of  similar  kind  or  class  in  department  Avhere 
created. 

Article  II. — Monthly,  Weekly,  or  Daily  Rates. 

For  all  monthly,  weekly,  or  daily  rated  employees  in  the  departr 
ments  herein  referred  to,  and  not  othenvise  provided  for,  increase 
the  rates  in  effect  as  of  January  1,  1918,  prior  to  the  application  of 
General  Order  No.  27  on  the  basis  of  twenty-five  (25)  dollars  per 
month. 


253 

Article  III.— Maximum  Monthly  Rate. 

No  part  of  the  increases  herein  specified  shall  be  applied  to  estab- 
lish a  salary  in  excess  of  two  hundred  fifty  (250)  dollars  per  month. 

Article  IV. — Preservation  of  Rates. 

(a)  The  minimum  rates,  and  all  rates  in  excess  thereof,  as  herein 
estabhshed,  and  higher  rates  which  have  been  authorized  since  Jan- 
uary 1,  1918,  except  by  General  Order  No.  27,  shall  be  preserved. 

(&)  Employees  temporarily  or  permanently  assigned  to  higher 
rated  positions  shall  receive  the  higher  rates  while  occupying  such 
positions;  employees  temporarily  assigned  to  lower  rated  positions 
shall  not  have  their  rates  reduced. 

Article  V. — Exception. 

The  provisions  of  this  order  will  not  apply  in  cases  where  amounts 
less  than  thirty  (30)  dollars  per  month  are  paid  to  individuals  for 
special  service  which  only  takes  a  portion  of  their  time  from  out- 
side emplojmient  or  business. 

Article  VI. — Hours  of  Service. 

Eight  (8)  consecutive  hours,  exclusive  of  the  meal  period,  shall 
constitute  a  day's  work. 

Article  VII. — Overtime  and  Calls. 

(a)  Where  there  is  no  existing  agreement  or  practice  more  favor- 
able to  the  employees,  overtime  shall  be  computed  for  the  ninth  and 
tenth  hour  of  continuous  service  pro  rata  on  the  actual  minute  basis, 
and  thereafter  at  the  rate  of  time  and  one-half  time.  Even  hours 
will  be  paid  for  at  the  end  of  each  pay  period ;  fractions  thereof  will 
be  carried  forward. 

(b)  When  notified  or  called  to  work  outside  of  estabhshed  hours, 
employees  will  be  paid  a  minimum  allowance  of  three  (3)  hours. 

(c)  Employees  will  not  be  required  to  suspend  work  during  regu- 
lar hours  to  absorb  overtime. 

Article  VIII. — Promotion  and  Seniority  Rights. 

(a)  Promotions  shall  be  based  on  ability,  merit,  and  seniority. 
Ability  and  merit  being  sufficient,  seniority  shall  prevail.  The  man- 
agement shall  be  the  judge,  subject  to  an  appeal  as  provided  for  in 
Article  IX. 

(b)  The  seniority  rights  of  laborers,  as  such,  will  be  restricted  to 
their  gangs,  except  where  gang  is  abohshod  they  may  displace 
laborers  in  other  gangs  who  are  junior  in  service. 


254 

(c)  Except  as  provided  for  in  section  (&)  of  this  article,  the 
seniority  rights  of  employees  referred  to  herein  to — 

(1)  New  positions, 

(2)  Vacancies:  Will  be  governed  by  section  (a)  of  this  article, 

and  will  be  restricted  to  the  maintenance  division  upon 
which  employed. 

(d)  Employees  declining  promotion  shall  not  lose  their  seniority. 
{e)  Employees  accepting  promotion  will  be  allowed  thirty  (30) 

days  in  which  to  qualify,  and  failing,  will  be  returned  to  former 
position  without  loss  of  seniority. 

(f)  New  positions  or  vacancies  will  be  promptly  bulletined  for  a 
period  of  five  (5)  days  at  the  tool  house  or  in  the  department  where 
they  occur.  Employees  desiring  such  positions  will  file  their  appli- 
cations with  the  designated  official  within  that  time,  and  the  appoint- 
ment will  be  made  within  ten  (10)  days  thereafter.  Such  position 
or  vacancy  may  be  filled  temporarily  pending  assignment.  The  name 
of  the  appointee  will  immediately  thereafter  be  posted  where  the 
position  or  vacancy  was  bulletined. 

ig)  In  reducing  forces,  seniority  shall  govern;  foremen  will  dis- 
place other  foremen  who  are  their  junior  in  service  before  displacing 
laborers.  When  forces  are  increased,  employees  will  be  retm-ned  to 
the  service  and  positions  formerly  occupied  in  the  order  of  their 
seniority.  Employees  desiring  to  avail  themselves  of  this  rule  must 
file  their  names  and  addresses  wdth  the  proper  official.  Employees 
failing  to  report  for  duty  or  to  give  satisfactory  reason  for  not  doing 
so  within  seven  (7)  days  from  date  of  notification  will  be  considered 
out  of  the  service. 

(i^)  Employees  furloughed  for  six  (6)  months  or  less  will  retain 
their  seniority. 

(i)  A  seniority  roster  of  all  employees  in  each  classified  depart- 
ment, showing  name,  date  of  entering  the  service,  and  date  of  pro- 
motion, will  be  posted  in  a  conspicuous  accessible  place  in  each  road- 
master's  or  supervisor's  office.  The  names  of  laborers  who  have 
been  in  the  service  at  least  six  (6)  months  prior  to  date  roster  is 
posted  or  revised  will  be  shown,  with  their  relative  standing  and  the 
date  they  entered  the  service. 

(j)  The  roster  will  be  revised  and  posted  in  January  of  each 
year,  and  shall  be  open  to  correction  for  a  period  of  sLxty  (60)  days 
after  date  posted  on  presentation  of  proof  of  error  by  an  employee 
or  representative.  A  copy  will  be  furnished  to  each  foreman  or 
duly  accredited  representative  upon  request. 

Article  IX. — Discipline  and  Grievances. 

(a)  An  employee  disciplined,  or  who  considers  himself  unjustly 
treated,  shall  have  a  fair  and  impartial  hearing,  provided  written 


255 

request  is  presented  to  his  immediate  superior  within  five  (5)  days 
of  date  of  advice  of  discipline,  and  the  hearing  shall  be  granted 
within  five  (5)  days  thereafter. 

(b)  A  decision  will  be  rendered  withm  seven  (7)  days  after 
completion  of  hearing.  If  an  appeal  is  taken,  it  must  be  filed  with 
the  next  higher  official  and  a  copy  furnished  the  official  whose  decision 
is  appealed  within  five  (5)  days  after  date  of  decision.  The  hearing 
and  decision  on  the  appeal  shall  be  governed  by  the  time  limits  of 
the  preceding  section. 

(c)  At  the  hearing,  or  on  the  appeal,  the  employee  may  be  assisted 
by  a  committee  of  employees,  or  by  one  or  more  duly  accredited 
representatives. 

(d)  The  right  of  appeal  by  employees  or  representatives,  in  regu- 
lar order  of  succession  and  in  the  manner  prescribed,  up  to  and  in- 
clusive of  the  highest  official  designated  by  the  raihoad  to  whom 
appeals  may  be  made,  is  hereby  established. 

(e)  An  employee  on  rec^uest  wOl  be  given  a  letter  stating  the  cause 
of  disciphne.  A  transcript  of  the  evidence  taken  at  the  investigation 
or  on  the  appeal  will  be  furnished  on  request  to  the  employee  or 
representative. 

(/)  If  the  final  decision  decrees  that  charges  against  employee 
were  not  sustained,  the  record  shall  be  cleared  of  the  charge;  if  sus- 
pended or  dismissed,  the  employee  shaU  be  returned  to  former  posi- 
tion and  paid  for  aU  time  lost. 

(g)  Committees  of  employees  shaU  be  granted  leave  of  absence 
and  free  transportation  for  the  adjustment  of  differences  between 
the  railroad  and  the  employee. 

Article  X. — General  Rules. 

(a)  For  main  line,  branch  line,  and  yard  section  men,  the  day's 
work  will  start  and  end  at  point  designated  to  report  for  duty  at 
their  respective  sections  or  yards. 

(b)  Employees  taken  from  their  regular  assignment  or  outfit, 
to  work  temporarily  elsewhere,  wiU  be  furnished  with  board  and 
lodging  at  the  railroad's  expense. 

(c)  Unless  they  so  desire,  except  in  emergency,  employees  shall  not 
be  transferred  from  one  division  to  another. 

Article  XI, — Rules  for  Application  of  this  Order, 

(a)  It  is  not  the  intention  of  this  order  to  change  the  number  of 
days  per  month  for  monthly  paid  employees.  The  increases  per 
month  provided  for  herein  shall  apply  to  the  same  number  of  days 
per  month  which  were  worked  as  of  Januaiy  1,  1918. 


256 

(h)  The  pay  of  female  employees,  for  the  same  class  of  work, 
shall  be  the  same  as  that  of  men,  and  their  working  conditions  must 
be  healthful  and  fitted  to  their  needs.  The  laws  enacted  for  the 
government  of  their  emplo^nnent  must  be  observed. 

Article  XII. — Interpretation  of  this  Order. 

The  rates  of  pay  and  rules  herein  established  shall  be  incorporated 
into  existing  agreements  and  into  agreements  which  may  be  reached 
in  the  future,  on  the  several  railroads;  and  should  differences  arise 
between  the  management  and  the  employees  of  any  of  the  railroads 
as  to  such  mcorporation,  intent,  or  apphcation  of  this  order  prior  to 
the  creation  of  additional  railway  boards  of  adjustment,  such  (pies- 
tions  of  difference  shaU  l)e  referred  to  the  Director  of  the  Division  of 
Labor  for  decision,  when  properly  presented,  subject  always  to  re- 
view by  the  Director  General. 

Agreements  or  practices,  except  as  changed  by  this  order,  remain  in 

effect, 

W.  G.  McAdoo, 

Director  General  of  Railroads. 


Interpretation   Xo.   1  to   Supplement  Xo.   8  to   General  Order 

Xo.  27. 

Washington.  D.  C.  Xocemhcr  23.  WIS. 

overtime  monthly,  weekly  or  daily  paid  employees. 

Article  I. 

Eight  consecutive  hours,  exclusive  of  the  meal  period,  constituting 
a  day's  work  from  the  effective  date  of  Supplement  Xo.  8  to  General 
Order  Xo.  27,  the  increases  provided  for  therein  and  applicable  to 
monthly,  weekly  and  daily  paid  employees,  specified  in  Article  I, 
paragraphs  (a),  (&),  {e)  and  (h).  and  Article  II  of  Supplement 
No.  8,  are  based  upon  the  recognized  number  of  working  days  con- 
stituting a  calendar  year  (including  Sundays  and  or  holidays  Avhere 
they  have  been  considered  a  part  of  the  employee/s  assignment),  and 
the  rates  of  pay  in  effect  January  1.  11)18,  prior  to  the  application  of 
General  Order  Xo.  27,  exclusive  of  overtime.  The  following  ex- 
amples illustrate  the  method  to  be  used  in  establishing  the  straight 
time  hourly  rate  as  the  basis  of  payment  for  overtime  service : 

Example  (a)  Employees  working  thirty  days  per  month  on  the  monthly, 
weekly  <'i*  <lail.v  basis,  at  a  wage  amounting  to  $85.00  per  month  on  .January  1, 
1918,  prior  to  the  application  of  General  Order  No.  27,  would  on  September  1, 
1918,  under  Supplement  No.  8.  Article  I— (o),  automatically  advance  to  the 
basic  rate  of  .$90.00  per  month,  plus  $25.00  increase,  ostablishlng  the  rate  of 


257 

$115.00  or  $1,380.00  per  year.  In  computing  the  pro  rata  rate  per  hour  for 
overtime  pay  for  monthly,  weekly  or  dally  paid  employees,  take  the  number 
of  working  days  constituting  a  calendar  year,  multiply  by  eight  and  dividf  the 
annual  salary  by  the  total  hours,  exclusive  of  overtime  and  disregarding  Time 
absent  on  vacations,  sick  leave,  holidays,  or  for  any  other  cause.  In  determin- 
ing the  liourly  rate,  fractions  less  than  one-fourth  of  one  cent  shall  be  as  one- 
fourth  of  one  cent ;  over  one-fourth  and  under  one-half,  as  one-half  cent :  over 
one-half  and  under  three-fourths,  as  three-fourths ;  over  three-fourths,  as  one 
cent. 

Example   (b)   Yearly  wage  $1,380.00-^-2,880  hours=40.97  or  4U  per  hour. 

Example  (c)  Yearly  wage  $1,500.00-^-2,880  hours=52.1  or  52.25<?  per  hour. 

Example  (d)  Yearly  wage  $1,800.00-^2,880  hours=62.5^  per  hour. 

Example   (e)   Yearly  wage  $2,100.00^-2,880  hours=72.91  or  TSc*  per  hour. 

Example  (/)   Yearly  wage  $2,400.00^2.880  hours=83.33  or  83.50  per  hour. 

Note. — It  is  to  be  understood  that  2,880  hours  is  illustrative  only  ;  the  hours  per  reap 
will  vary  as  the  assigned  work  days  in  a  year  vary. 

Abticle  II. 

On  February  21,  1918,  the  Director  General  issued  General  Onler 
No.  8,  paragraph  3  thereof  reading  as  follows: 

The  broad  question  of  wages  and  hours  will  be  passed  upon  and  rei^orted 
to  the  Director  General  as  promptly  as  possible  by  the  present  Railroad  Wage 
Commission.  Pending  a  disposition  of  these  matters  by  the  Director  General, 
all  requests  of  employees  involving  revision  of  schedules  of  general  changes  in 
conditions  affecting  wages  and  hours  will  be  held  in  abeyance  by  both  the  man- 
agers and  employees.  Wages,  when  determined  upon,  will  be  made  retroactive 
to  January  1,  1918,  and  adjusted  accordingly.  Matters  of  controversy  arising 
under  interpretations  of  existing  wage  agreements  and  other  matters  not  re- 
lating to  wages  and  hours,  will  take  their  usual  course,  and  in  the  event  of 
inability  to  reach  a  settlement,  will  be  referred  to  the  Director  General. 

If  employees  coming  within  the  scope  of  Supplement  No.  8  to 
General  Order  No.  27,  were  paid  a  punitive  rate  for  overtime  after 
the  regular  day's  work,  Sundays  and  or  holidays  prior  to  February 
21,  1918,  the  same  conditions  should  apply  on  the  eight  hour  basis. 
Any  punitive  overtime  rate  established  for  employees  under  this  in- 
terpretation since  February  21.  1918,  except  as  established  by  the 
Director  General,  is  unauthorized  and  can  not  be  recognized. 

Example  (a)  Employees  working  ten  hours  per  day  January  1,  1918,  prior  to 
the  applications  of  General  Order  No.  27.  and  who  Avere.  prior  to  February  21, 
1918,  paid  at  the  rate  of  time  and  one-half  for  overtime,  should  be  paid  as 
follows : 

8  a.  m.  to  12  noon 4  hours'  work 

12  noon  to  1  p.  m 1  hour  for  meal  excluded 

1  p.  m.  to  5  p.  m 4  hours'  work 

5  p.  m.  to  7  p.  m 2  hours  at  rate  of  time  and  one-half  time 

Elapsed  time 11  hours 

Time  for  meal 1  hour  deducted 

Overtime 2  hours 

Total  time  to  be  paid  for 11  hours 

105889°— 19 17 


258 

Example  (6)  Overtime  commences  immediately  following  ttie  eighth  con- 
secutive hour  of  continuous  service,  after  deducting  the  meal  period.  On  the 
basis  of  pro  rata  time  for  the  ninth  and  the  tenth  hour. 

8  a.  m.  to  12  noon 4  hours'  work 

12   noon   to   1   p.    m 1  hour  for  meal  excluded 

1  p.  m.  to  5  p.  m 4  hours'  work 

5  p.   m.   to  7  p.    m 2  hours'  overtime,  pro  rata  rate 

7  p.  m.  to  9  p.  m 2  hours'  overtime,  li  times  pro  rata  rate 

Elapsed  time 13  hours 

Time    for    meal 1  hour  deducted 

Continuous    service 12  hours 

Total    time    to    be    paid   for___      13  hours 

Example  (c)  Employees  working  straight  through  eight  consecutive  hours 

6  a.  m.  to  2  p.  m 8  hours'  work 

2  p.  m.  to4p.  m 2  hours'  overtime,  pro  rata  rate. 

4  p.  m.  to  6  p.  m 2  hours'  overtime,  li  times  pro  rata  rate. 

Elapsed  time 12  hours 

Continuous  service 12  hours 

Total  time  to  be  paid  for 13  hours 

Article  III.— Hourly  Rates. 

The  employees  coming  under  the  provisions  of  paragraphs  (e),  (/) 
and  (^)  of  Article  I  of  Supplement  No.  8  to  General  Order  No.  27, 
who  were,  on  January  1,  1918,  prior  to  the  application  of  General 
Order  No.  27,  paid  on  a  basis  of  ten  hours  or  more  to  constitute  a  day, 
for  whom  hourly  rates  have  been  established,  as  per  the  above 
specified  paragi^aphs,  shall,  on  and  after  September  1,  1918,  the 
effective  date  of  Supplement  No.  8,  receive  one-eighth  of  the  wages 
received  for  ten  hours  on  January  1,  1918,  prior  to  the  application  of 
General  Order  No.  27,  as  their  basic  hourly  rate,  to  which  shall  be 
added  thirteen  cents  per  hour  for  the  employees  coming  under  the 
provisions  of  paragraphs  (e)  and  (/),  observing  the  minimum  rate: 
and  twelve  cents  per  hour  for  the  employees  coming  under  the  pro- 
visions of  paragraph  (g),  provided  the  hourly  rate  thus  obtained 
shall  not  exceed  the  maximum  rate  of  forty  cents  per  hour. 

Example  (o)  Employees  coming  under  the  provisions  of  Article  I — (e),  on  a 
ten  hour  basis,  rate  $3.75  per  day ;  one-eighth  of  375  equals  46.87  or  forty-seven 
cents  per  hour;  adding  the  increase  of  thirteen  cents  per  hour  produces  a  rate 
of  sixty  cents  per  hour. 

The  same  method  of  procedure  will  apply  to  the  employees  coming 
under  the  provisions  of  Article  I — (/). 


259 

Example  (b)  Employees  coming  under  the  provisions  of  Article  I — (g),  oa  a 
ten  hour  basis,  rate  $2.35  per  day ;  one-eighth  of  235  equals  29.37  or  29.5  cents 
per  hour:  adding  the  increase  of  twelve  cents  per  hour  produces  a  rate  of  41.5 
cents  per  hour,  the  rate  would  revert  to  the  maximum  of  forty  cents. 

Note. — To  determine  the  hourly  rate  to  be  paid  employees  on  the  hourly  basis  and 
for  whom  ten  hours  or  more  were  tBe  established  hours  of  service,  use  the  method  and 
examples  (o)  and  (b)  of  above  Article  III,  for  both  classes  working  less  than  ten  hours, 
and  over  eight  hours,  one-eighth  of  the  wage  received  for  the  number  of  hours  recog- 
nized as  a  daj'"s  work. 

Article  IV. — Pay  for  Calls. 

Employees  who  are  notified  or  called  to  work  outside  the  eight 
consecutive  hours,  exclusive  of  the  meal  period  and  continuous 
service,  constituting  their  regular  assignment,  shall  be  paid  a  mini- 
mum allowance  of  three  hours  for  two  hours  work  or  less;  if  held 
over  two  hours,  time  and  one-half  time  will  paid,  computed  on  the 
minute  basis. 

Example  (a) 

8  a.  m.  to  12  noon 4  hours'  work 

12  noon  to  1  p.  m 1  hour  for  meal  excluded 

1  p.  m.  to  5  p.  m 4  hour.s'  work 

6  p.  m.  to  7.30  p.  m lA  hours'  overtime,  li  times  pro  rata  rate. 

Elapsed   time Hi  hours. 

Time    for    meal 1  hour 

Break    in    coutinuou-s    service —     1  hour 

Time  for  call 3  hours,  minimum  guarantee 

Total  time  to  be  paid  for 11  hours 

Article  V. 

Exclusive  of  employees  whose  regular  assignment  includes  Sundays 
and  or  holidays,  employees  notified  or  called  to  work  on  Sundays  and 
or  holidays  will  be  paid  not  less  than  the  minimum  allowance  of  three 
hours,  and  where  no  existing  agreement  or  practice  is  more  favorable, 
such  employees  will  be  paid  as  per  examples  (a)  and  (5)  of  Article  II. 

Article  YI. 

Payment  of  overtime  at  a  rate  in  excess  of  pro  rata,  will  be  com- 
puted from  and  added  to  the  pro  rata  rate. 

Article  VII. 

Unless  acceptable  to  a  majority  of  employees  in  a  department  or 
subdivision  thereof,  the  meal  period  shall  not  be  less  than  thirty 
minutes  nor  more  than  one  hour. 


260 

Article  VIII. 

Where  unjustifiable  inequalities  develop  or  exist  in  the  rates  of 
pay  for  relatively  the  same  service  and  responsibility,  as  between 
employees  of  the  same  class  within  the  respective  gi'oups,  as  specified 
in  Supplement  No.  8  to  General  Order  No.  27,  the  Regional  Directors 
are  hereby  authorized  to  establish  uniform  rates  of  pay  by  zones  or 
districts  throughout  their  respective  regions,  under  the  following 
conditions : 

(a)  The  maximum  rates  established  by  Supplement  No.  8  to  General  Order 
No.  27,  must  not  be  exceeded  (note  exception  In  (d)  following). 

(b)  Rates  established  by  Supplement  No.  8  to  General  Order  No.  27  must 
not  be  reduced. 

(c)  The  specified  differentials  in  the  established  maximum  rates  for  hourly 
workers,  to  be  preserved. 

id)  Where  differentials  in  wage  rates  existed  for  common  labor  in  favor  of 
tunnel  gangs  and  tunnel  and  elevated  common  labor,  such  differentials  should 
be  maintained,  but  in  no  case  extended  to  create  a  greater  differential  than 
heretofore  existed. 

(e)  All  rates  herein  provided  for  shall  be  filed  by  the  Regional  Directors  with 
tlie  Board  of  Railroad  Wages  and  Working  Conditions. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Interpretation   No.   2   to   Supplement   No.   8  to  General  Order 

No.  27. 

Washington,  D.  C,  November  30^  1918. 
Question. — It  is  intended  that  house  and  bridge  carpenters  in 
the  maintenance  of  way  service  shall  receive  the  rates  of  pay  and  be 
governed  by  the  conditions  specified  in  Article  I,  section  6,  of  Sup- 
plement No.  4  to  General  Order  No.  27,  under  the  heading  of 
Carmen  ? 

Decision. — House  and  bridge  carpenters  in  the  maintenance  of 
Avay  service  come  under  the  provision  of  Supplement  No.  8  to  Gen- 
eral Order  No.  27,  and  their  rates  of  pay  are  established  as  per 
paragraph  (e).  Article  I  of  Supplement  8. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Supplement  No.  9  to  General  Order  No.  27. 

Washington,  October  31^  1918. 
In  addition  to  the  duties  heretofore  conferred  upon  the  Board  of 
llailroad  W^ages  and  Working  Conditions  it  shall  be  the  duty  of  the 
Board  to  hear  and  investigate  matters  presented  by  the  officers  and 


261 

employees  of  the  American  Railway  Express  Company  or  tlieir  rep- 
resentatives affecting — 

(1)  Inequalities  as  to  wages  and  working  conditions  whether 

as  to  individual  employees  or  classes  of  employees. 

(2)  Conditions  arising  from  competition  with  employees  in 

other  industries. 

(3)  Eules  and  working  conditions  for  the  several  classes  of 

employees,  either  for  the  country  as  a  whole  or  for  dif- 
ferent parts  of  the  country. 
The  Board  in  the  performance  of  these  duties  shall,  as  in  the  case 
of  railroad  employees,  be  solely  an  advisory  body  and  shall  submit 
its  recommendations  to  the  Director  General  for  his  determination. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Supplement  No.  10  to  General  Order  Xo.  27. 

Washington,  D.  C,  November  16^  1918. 
Effective  October  1,  1918,  for  positions  held  by  Telegrapliers,  Teleplione  Oper- 
ators (except  Switchboard  "Operators),  Agent  Telegraphers.  Agent  Tele- 
phoners,  Towermen,  Levermen,  Tower  and  Train  Directors,  Block  Oi^erators 
and  Staffmen,  the  following  rates  of  pay,  rules  for  overtime,  .and  working 
conditions  upon  railroads  under  Federal  control,  are  hereby  ordered,  super- 
seding General  Order  No.  27,  and  in  lieu  thereof. 

Article  I. 

{a)  All  employees  herein  specified  shall  be  paid  on  the  hourly  basis. 

{h)  To  determine  the  hourly  rate  for  positions  held  by  monthly 
paid  employees,  other  than  those  provided  for  in  Paragraph  {a)^ 
Article  VIII,  multiply  by  twelve  the  regular  monthl}*  rate  in  effect 
as  of  January  1,  1918,  prior  to  the  application  of  General  Order  Xo. 
27  (exclusive  of  all  compensation  for  extra  services)  and  divide  by 
the  number  of  regularly  assigned  Avorking  days  for  the  year  1918; 
then  divide  the  daily  rate  thus  obtained  by  the  regularl}^  assigned  or 
established  number  of  hours  constituting  a  day's  work,  exclusive  of 
the  meal  hour. 

{e)  To  determine  the  hourly  rate  for  positions  held  by  weekly  paid 
employees,  other  than  those  provided  for  in  Paragraph  (a).  Article 
VIII,  multiply  b}'  fifty-two  the  regular  weekly  rate  in  effect  as  of 
January  1,  1918,  prior  to  the  application  of  General  Order  Xo.  27 
(exclusive  of  all  compensation  for  extra  services) ,  and  divide  by  the 
number  of  regularly  assigned  working  days  for  the  year  1918 ;  then 
divide  the  daily  rate  thus  obtained  by  the  regularly  assigned  or  es- 
tablished number  of  hours  constituting  a  day's  work,  exclusive  of 
the  meal  hour. 


262 

(d)  To  determine  the  hourly  rate  for  positions  held  by  daily  paid 
employees,  other  than  those  provided  for  in  Paragraph  (a),  Article 
YIII,  divide  the  regular  daily  rate  in  effect  as  of  January  1,  1918, 
prior  to  the  application  of  General  Order  No.  27  (exclusive  of  all 
compensation  for  extra  services)  by  the  regularly  assigned  or  estab- 
lished number  of  hours  constituting  a  day's  work,  exclusive  of  the 
meal  hour. 

(e)  Where  there  are  no  regularly  assigned  or  established  daily 
hours,  for  the  purpose  of  computing  the  hourly  rate,  ten  hours  shall 
be  used  as  the  divisor. 

(/)   In  determining  the  hourly  rate,  fractions  less  than  one-fourth 
of  one  cent  shall  be  as  one-fourth  of  one  cent;  over  one-fourth  and 
under  one-half,  as  one-half  cent;   ovet*  one-half  and  under  three- 
fourths,  as  three-fourths  of  one  cent ;  over  three- fourths,  as  one  cent. 
Method  of  obtaining  hourly  rate  as  of  January  1,  1918. 

MONTHLY. 

Examples : 

I.  $100X12=$1200,  divided  by  307  days=$3.9087,  divided  by  8  equals  48.86^ 
Hourly  rate  490 

II.  $100X12=.$1200,  divided  by  312  days=!|;3.8461,  divided  by  9  equals  42.73(/; 
Hourly  rate  42.750 

III.  .$100X12=!i;i200,  divided  by  365  days=$3.2876,  divided  l)y  10  equals  32.880 
Hourly  rate  SS^" 

WEEKLY. 

Examples : 

IV.  $20X52  equals  $1040,  divided  by  312  days  equals  $3.3333,  divided  by  8 
equals  41.660     Hourly  rate  41.750 

V.  $20X52  equals  $1040  divided  by  365  days  equals  $2.8493,  divided  by  10 
equals  28.49^     Hourly  rate  28.50 

DAILY. 

VI.  $3.00  per  day  divided  by  8  etiuals  37.500  Hourly  rate  37.50 
$3.00  per  day  divided  by  9  equals  33.330  Hourly  rate  33.50 
$3.00  per  day  divided  by  10  equals  30.000     Hourly  rate  300 

Article  II. — Rates  of  Pay. 

For  positions  held  by  Telegraphers,  Telephone  Operators  (except 
switchboard  operators).  Agent  Telegraphers,  Agent  Telephoners. 
Towermen,  Levermen,  Tower  and  Train  Directors,  Block  Operators 
and  Staffmen,  who  were  on  January  1,  1918,  prior  to  the  application 
of  General  Order  No.  27,  receiving  less  than  35^  per  hour,  establish  a 
basic  minimum  rate  of  350,  per  hour,  and  to  this  basic  minimum  rate 
and  all  hourly  rates  of  350  and  above,  add  130  per  hour,  establish- 
ing a  basic  minimum  rate  of  480  per  hour. 

Article  III. — Preservation  of  Rates  and  Classification. 

(a)  The  minimum  rates  and  all  rates  in  excess  thereof,  as  herein 
established,  and  higher  rates  which  have  been  authorized  since  Jan- 
uary 1,  1918.  except  by  General  Order  No.  27,  shall  be  preserved. 


263 

(&)  The  entering  of  emploj^ees  in  the  positions  occupied  in  the 
service  or  changing-  their  classification  or  work  shall  not  operate  to 
establish  a  less  favorable  rate  of  pay  or  condition  of  employment  than 
is  herein  established. 

(c)  Where  existing  pay  roll  classification  does  not  conform  to 
Article  II,  employees  performing  service  in  the  classes  specified 
therein,  shall  be  classified  in  accordance  therewith. 

Article  IV. — Exception. 

The  provisions  of  this  order  will  not  apply  in  any  case  where 
amounts  less  than  $30  per  month  are  paid  to  individuals  for  special 
service  which  only  takes  a  portion  of  their  time  from  outside  employ- 
ment or  business. 

Article  V. — Hours  or  Service — 0\'ertime  and  Calls. 

(a)  Eight  consecutive  hours,  exclusive  of  the  meal  hour,  shall 
constitute  a  day's  work,  except  that  where  two  or  more  shifts  are 
worked,  eight  consecutive  hours  with  no  allowance  for  meals  shall 
constitute  a  day's  work. 

(h)  Overtime  shall  be  computed  at  the  rate  of  time  and  one-half 
time.  Even  hours  shall  be  paid  for  at  the  end  of  each  pay  period, 
fractions  thereof  will  be  carried  forward. 

(c)  When  notified  or  called  to  work  outside  of  established  hours, 
employees  will  be  paid  a  minimum  allowance  of  two  hours  at  over- 
time rate. 

(d)  Employees  will  not  be  required  to  suspend  work  during  regular 
hours  or  to  absorb  overtime. 

Article  YI. — United  States  Mail. 

When  the  carrying  of  United  States  Mail  and  Parcel  Post  by  the 
employees  herein  specified  becomes  unduly  burdensome  or  interferes 
with  the  proper  operation  of  trains,  they  will  be  relieved  from  such 
work. 

Article  VII. — Discipline  and  Grievances. 

(a)  An  employee  disciplined,  or  who  considers  himself  unjustly 
treated,  shall  have  a  fair  and  impartial  hearing,  provided  written 
request  is  presented  to  his  immediate  superior  within  five  (5)  days  of 
the  date  of  the  advice  of  discipline,  and  the  hearing  shall  be  granted 
within  five  (5)  days  thereafter. 

(b)  A  decision  will  be  rendered  within  seven  (7)  days  after  com- 
pletion of  hearing.  If  an  appeal  is  taken,  it  must  be  filed  with  the 
next  higher  official  and  a  copy  furnished  the  official  whose  decision 
is  appealed  within  five  (5)  days  after  date  of  decision.    The  hearing 


264 

and  decision  on  the  appeal  sliall  be  governed  by  the  time  limits  of 
the  preceding  section. 

(c)  At  the  hearing,  or  on  the  appeal,  the  employees  may  be  assisted 
by  a  committee  of  employees,  or  by  one  or  more  duly  accredited 
representatives. 

(d)  The  right  of  appeal  by  employees  or  representatives,  in  regular 
order  of  succession  and  in  the  manner  prescribed,  up  to  and  inclusive 
of  the  liighest  official  designated  by  the  railroad  to  whom  appeals 
may  be  made  is  hereby  established. 

(e)  An  employee  on  request  will  be  given  a  letter  stating  the  cause 
of  discipline.  A  transcript  of  the  evidence  taken  at  the  investiga- 
tion or  on  the  appeal  will  be  furnished  on  request  to  the  employee  or 
representative. 

(f)  If  the  final  decision  decrees  that  charges  against  the  employee 
were  not  sustained,  the  record  shall  be  cleared  of  the  charge;  if  sus- 
pended or  dismissed  the  employee  Avill  be  returned  to  former  position 
and  paid  for  all  time  lost. 

{(/)  Committees  of  employees  shall  be  granted  leave  of  absence 
and  free  transportation  for  the  adjustment  of  differences  between 
the  railroad  and  the  employees. 

Article   VIII. — Rules   for  Application   of  This   Order. 

(«)  The  foregoing  basis  will  not  be  applied  to  positions  where  the 
compensation  as  of  January  1,  1918,  was  upon  a  commission  basis, 
or  upon  a  combination  of  salary  and  commission  (not  including 
express  or  outside  commissions) .  The  Board  of  Railroad  Wages  and 
Working  Conditions  will  consider  and  make  individual  recommenda- 
tions as  to  the  correct  salary  for  such  positions  when  presented  to  it 
in  the  manner  prescribed  in  Suj)plements  No.  6  and  No.  C-A  to 
General  Order  No.  27. 

(b)  The  pay  for  female  employees,  for  the  same  class  of  work, 
shall  be  the  same  as  that  of  men,  and  their  working  conditions  must 
be  healthful  and  fitted  to  their  needs.  The  laws  enacted  for  the 
government  of  their  employment  must  be  observed. 

(c)  Vacations  with  pay  are  abolished,  effective  January  1.  1919. 

Akttcle  IX. — Interpretation  of  This  Order. 

The  rates  of  pay  and  rules  herein  established  shall  be  incorporated 
into  existing  agreements  and  into  agreements  which  may  be  reached 
in  the  future  on  the  several  railroads;  and  should  differences  arise 
between  the  management  and  the  employees  of  any  of  the  railroads 
as  to  such  incorporation,  intent,  or  application  of  this  order  prior  to 
the  creation  of  additional  railway  boards  of  adjustment,  such  ques- 
tion of  differences  shall  be  referred  to  the  Director  of  the  Division 


265 

of  Labor  for  decision,  when  properly  presented,  subject  alwaj^s  to  re- 
view by  the  Director  General. 

Agreements  or  practices,  except  as  changed  by  this  order,  remain 

in  effect. 

AV.  G.  McAdoo, 

Director  General  of  RailrocuU. 


Supplement  No.  11  to  General  Okder  Xo.  27. 

Washington,  November  2J^  191S. 
Effective   October    1,    1918,    superseding   General    Order   No.    27,    and    in   lieu 
thereof  as  to  tlie  employees  herein  named,  the  following  rates  of  pay,  rules 
for  overtime,  and  working  conditions  upon  railroads  under  Federal  control 
are  hereby  ordered: 

Article  I. — Rates  of  Pay. 

For  agents,  except  as  provided  for  in  Article  IV,  whose  regular 
assignment  does  not  require  the  sending  or  receiving  of  railroad 
train  orders  or  messages  by  telephone  or  telegraph,  establish  a  basic 
minimum  rate  of  seventy  ($70.00)  dollars  per  month,  and  to  this 
basic  minimum  rate  and  all  rates  of  seventy  ($70.00)  dollars  and 
above,  in  effect  as  of  January  1,  1918,  prior  to  the  application  of 
General  Order  No.  27,  add  twenty-five  ($25.00)  dollars  per  month, 
establishing  a  minimum  rate  of  ninety-five  ($95.00)  dollars  per 
month. 

Article  II. — Maximum  Monthly  Wage. 

No  part  of  the  increases  provided  for  in  this  order  shall  be  applied 
to  establish  a  salary  in  excess  of  two  hundred  and  fifty  ($250.00) 
dollars  per  month. 

Article  III. — Preservation  of  Rates. 

{a)  The  minimum  rates  and  all  rates  in  excess  thereof  as  herein 
established,  and  higher  rates  which  have  been  authorized  since  Janu- 
ary 1,  1918,  except  by  General  Order  No.  27.  shall  be  preserved. 

(6)  Employees  temporarily  or  permanently  assigned  to  higher 
rated  positions  shall  receive  the  higher  rates  while  occupying  such 
positions;  employees  temporarily  assigned  to  lower  rated  positions 
shall  not  have  their  rates  reduced. 

Article  IV. — Exceptions. 

{a)  The  provisions  of  this  order  will  not  apply  in  cases  where 
amounts  less  than  thirty  ($30.00)  dollars  per  month  are  paid  to  indi- 
viduals for  special  service  w^hich  only  takes  a  portion  of  their  time 
from  outside  employment  or  business. 

(&)  For  agents  (except  those  provided  for  in  Article  I  and  in 
Section  A.  Article  IV)  whose  compensation  as  of  January  1,  1918, 


266 

was  upon  a  commission  basis,  or  upon  a  combination  of  salary  and 
commission  (not  including  express  or  outside  commission),  and  for^ 
agents  at  the  smaller  stations  where  the  salary  as  of  January  1,  1918, 
prior  to  the  application  of  General  Order  No.  27,  was  $50.00  per 
month  or  less,  add  $25.00  per  month  to  the  rates  in  effect  January  1, 
1918,  prior  to  the  application  of  General  Order  No.  27. 

Article  V. — Hours  or  Service. 

Eight  (8)  consecutive  hours  exclusive  of  the  meal  period  shall  con- 
stitute a  day's  work. 

Article  VI. — Overtime  and  Calls. 

(a)  Where  there  is  no  existing  agreement  or  practice  more  favor- 
able to  the  employees,  overtime  shall  be  computed  for  the  ninth  and 
tenth  hour  of  continuous  service  pro  rata  on  the  actual  minute  basis, 
and  thereafter  at  the  rate  of  time  and  one-half  tune.  Even  hours 
will  be  paid  for  at  the  end  of  each  pay  period.  Fractions  thereof 
will  be  carried  forward. 

(b)  Employees  who  are  notified  or  called  to  work  outside  the  eight 
consecutive  hours,  exclusive  of  the  meal  period  and  continuous  serv- 
ice, constituting  their  regular  assignment,  shall  be  paid  a  minimum 
allowance  of  three  hours  for  two  hours  work  or  less;  if  held  over 
two  hours,  time  and  one-half  time  will  be  paid,  computed  on  the 
minute  basis. 

(<?)  Exclusive  of  employees  whose  regular  assigmnent  includes 
Sundays  and  or  holidays,  employees  notified  or  called  to  work  on 
Sundays  and  or  holidays,  will  be  paid  not  less  than  the  minimum 
allowance  of  three  hours,  and  where  no  existing  agreement  or  prac- 
tice is  more  favorable,  such  employees  will  be  paid  at  their  regular 
rates. 

(d)  Employees  will  not  be  required  to  suspend  work  during  regu- 
lar hours  to  absorb  overtime. 

Article  YII. — Discipline  and  Grievances. 

(a)  An  employee  disciplined,  or  who  considers  himself  unjustly 
treated,  shall  have  a  fair  and  impartial  hearing,  provided  written 
request  is  presented  to  his  immediate  superior  within  five  (5)  days 
of  the  date  of  the  advice  of  discipline,  and  the  hearing  shall  be 
granted  within  five  (5)  days  thereafter. 

(b)  A  decision  will  be  rendered  within  seven  (7)  days  after  com- 
pletion of  hearing.  If  an  appeal  is  taken,  it  must  be  filed  with  the 
next  higher  official  and  a  copy  furnished  the  official  whose  decision 
is  appealed  within  five  (5)  days  after  date  of  decision.  The  hearing 
and  decision  on  the  appeal  shall  be  governed  by  the  time  limits  of 
the  preceding  section. 


267 

(c)  At  the  hearing,  or  on  the  appeal,  the  employees  may  be 
assisted  by  a  committee  of  employees,  or  by  one  or  more  duly 
accredited  representatives. 

{d)  The  right  of  appeal  by  employees  or  representatives,  in 
regular  order  of  succession  and  in  the  manner  prescribed,  up  to  and 
inclusive  of  the  highest  official  designated  by  the  railroad  to  whom 
appeals  may  be  made  is  hereby  established. 

(e)  An  employee  on  request  will  be  given  a  letter  stating  the  cause 
of  discipline.  A  transcript  of  the  evidence  taken  at  the  investi- 
gation or  on  the  appeal  will  be  furnished  on  request  to  the  employee 
or  representative. 

(/)  If  the  final  decision  decrees  that  charges  against  employee 
were  not  sustained,  the  record  shall  be  cleared  of  the  charge;  if 
suspended  or  dismissed  the  employee  will  be  returned  to  former 
position  and  paid  for  all  time  lost. 

(g)  Committees  of  employees  shall  be  granted  leave  of  absence 
and  free  transportation  for  the  adjustment  of  differences  between 
the  railroad  and  the  employees. 

Article  YIII. — Rules  for  Application  of  This  Order. 

(a)  It  is  not  the  intention  of  this  order  to  change  the  number  of 
days  per  month  for  monthly  paid  employees.  The  increase  per 
month  provided  for  herein  shall  apply  to  the  same  number  of  days 
per  month  which  were  worked  as  of  January  1,  1918. 

(h)  The  pay  of  female  employees,  for  the  same  class  of  work,  shall 
be  the  same  as  that  of  men,  and  their  working  conditions  must  be 
healthful  and  fitted  to  their  needs.  The  laws  enacted  for  the  govern- 
ment of  their  employment  must  be  observed. 

Article  IX. — Interpretation  of  This  Order. 

The  rates  of  pay  and  rules  herein  established  shall  be  incorporated 
into  existing  agreements  and  into  agreements  which  may  be  reached 
in  the  future,  on  the  several  railroads;  and  should  differences  arise 
between  the  management  and  the  employees  of  any  of  the  railroads 
as  to  such  incorporation,  intent,  or  application  of  this  order,  prior 
to  the  creation  of  additional  railway  boards  of  adjustment,  such 
questions  of  differences  shall  be  referred  to  the  Director  of  the  Divi- 
sion of  Labor  for  decision,  when  properly  presented,  subject  always 
to  review  by  the  Director  General. 

Agreements  or  practices,  except  as  changed  by  this  order,  remain 
in  effect. 

W.  G.  McAdoo, 
Dh'ector  General  of  Railroads. 


268 

Supplement  No.  12  to  General  Order  No.  27. 

Washington,  D,  C,  December  2, 1918. 
To  carrj'  out  the  intent  of  Article  VI,  of  General  Order  No.  27,  and 
retroactive  to  June  1,  1918,  it  is  ordered: 

1.  Employees  in  a  passenger  train  crew,  except  conductor,  collector, 
and  baggageinaster,  qualified  and  regularly  required  to  perform  the 
folloAving  essential  duties,  will  be  designated  as  passenger  brakemen 
or  flagmen  and  paid  accordingly: 

{a)  Inspect  cars  and  test  signal  and  brake  apparatus  for  the 
safety  of  train  movement. 

(&)  Use  hand  and  lamp  signals  for  the  protection  and  move- 
ment of  trains. 

(c)   Open  and  close  switches. 

(<?)  Couple  and  uncouple  cars  and  engines  and  the  hose  and 
chain  attachments  thereof. 

(e)   Compare  watches  when  required  by  rule. 

2.  Where  white  brakemen  are  not  employed,  the  compensation  and 
overtime  rule  for  colored  brakemen  shall  be  the  same,  for  both  pas- 
senger and  freight  service,  as  for  the  same  positions  on  the  minimum 
paid  contiguous  road. 

3.  This  order  shall  not  curtail  the  duties  of  employees  heretofore 
classed  as  "train  porters." 

4.  This  order  shall  not  infringe  upon  the  seniority  rights  of  white 
trainmen. 

W.  G.  McAdoo, 
Dk'ector  General  of  Railroads. 


Supplement  No.  13  to  General  Order  No.  27. 

Superseding  Supplements  Nos.  10  and  11  to  General  Order  No.  27. 

Washington,  December  28,  1918. 
Effective  October  1.  1918,  for  jjositions  held  by  telegraphers,  tele- 
phone operators  (except  switchboard  operators),  agents,  agent  teleg- 
raphers, agent  telephoners,  towermen,  levermen,  tower  and  train 
directors,  block  operators  and  staff  men,  the  following  rates  of  pay, 
rules  for  overtime,  and  working  conditions  upon  railroads  under  Fed- 
eral control,  are  hereby  ordered,  superseding  General  Order  No.  27, 
its  Supplements  Nos.  10  and  11,  and  in  lieu  thereof. 

Article  I. 

{a)  All  employees  herein  specified  shall  be  paid  on  the  hourly  basis 
except  those  provided  for  in  Article  IV. 

{h)  To  determine  the  hourly  basis  for  positions  held  by  monthly 
paid  employees,  multiply  by  12  the  regular  monthly  rate  in  effect  as 


269 

of  January  1,  1918,  prior  to  the  application  of  General  Order  Xo.  J 7 
(exclusive  of  all  compensation  for  extra  services),  divide  by  300 
(number  of  working  days  for  the  year),  and  apply  provisions  of 
section  (e)  of  this  article. 

(t?)  To  determine  the  hourly  rate  for  positions  held  by  weekly 
paid  employees,  multiply  by  52  the  regular  weekly  rate  in  effect  as  of 
January  1,  1918,  prior  to  the  application  of  General  Order  No.  27 
(exclusive  of  all  compensation  for  extra  services),  divide  by  300 
(number  of  working  days  for  the  year),  and  apply  provisions  of 
section  {e)  of  this  article. 

{(I)  To  determine  the  hourly  rate  for  positions  held  by  daily  paid 
employees,  multiply  the  daily  rate  in  effect  as  of  January  1,  1918, 
prior  to  the  application  of  General  Order  No.  27  (exclusive  of  all 
compensation  for  extra  services),  by  305,  divide  the  result  by  300 
(number  of  working  days  for  the  year),  and  applying  provisions  of 
(number  of  working  days  for  the  year),  and  apply  provisions  of 
section  (e)  oi  this  article. 

(e)  Employees  who  were  on  January  1,  1918,  prior  to  the  applica- 
tion of  General  Order  No.  27.  paid  on  a  basis  of  10  hours  or  more 
to  constitute  a  day's  work,  shall  receive  one-eighth  of  the  wages  re- 
ceived for  10  hours  on  January -1,  1918,  prior  to  the  application  of 
General  Order  No.  27,  as  their  basic  hourly  rate ;  employees  working 
less  than  10  hours  and  over  8  hours  shall  receive  one-eighth  of  the^ 
wages  received  for  the  number  of  hours  recognized  as  a  day's  work. 

(/)  Where  there  are  no  regularly  assigned  or  established  daily 
hours  for  the  jpiu-pose  of  computing  the  hourly  rate,  daily  hours  shall 
be  regarded  as  10,  one-eighth  of  which  will  be  the  hourly  rate. 

{(j)  In  determining  the  hourly  rate,  fractions  less  than  one-fourth 
of  one  cent  shall  be  as  one- fourth  of  one  cent;  over  one-fourth  and 
under  one-half,  as  one-half  cent;  over  one-half  and  under  three- 
fourths,  as  thite- fourths  of  one  cent ;  over  three-fourths,  as  one  cent. 

Article  II. 

RATES    OF    PAY. 

For  positions  held  by  telegraphers,  telephone  operators  (except 
switchboard  operators),  agents  (except  as  provided  in  Article  IV). 
agent  telegraphers,  agent  telephonei-s,  towermen,  levermen,  tower 
and  train  directors,  block  operators  and  staffmen,  to  the  rates  in 
effect  on  January  1,  1918,  prior  to  the  application  of  General  Order 
No.  27  add  13  cents  per  hour  and  2  cents  per  hour  additional  in  lieu 
of  vacations  (applicable  to  all  roads  irrespective  of  present  practice). 
Where  this  increase  fails  to  establish  a  rate  of  48  cents  per  hour, 
establish  a  minimmn  rate  of  48  cents  per  hour. 


270 
Article  III. 

PRESERVATION   OF  RATES   AND   OLrASSIFICATION. 

{a)  The  minimum  rates  and  all  rates  in  excess  thereof,  as  herein 
established,  and  higher  rates  which  have  been  authorized  since  Jan- 
uary 1,  1918,  shall  be  preserved. 

(b)  The  entering  of  employees  in  the  positions  occupied  in  the 
service  or  changing  their  classification  or  work  shall  not  operate  to 
establish  a  less  favorable  rate  of  pay  or  condition  of  employment 
than  is  herein  established. 

{c)  Where  existing  pay  roll  classification  does  not  conform  to 
Article  II,  employees  performing  service  in  the  classes  specified 
therein  shall  be  classified  in  accordance  therewith. 

Article  IV. 

EXCEPTIONS, 

The  provisions  of  this  order  will  not  apply : 

{a)  To  cases  where  salaries  less  than  thirty  ($30)  dollars  per 
month  are  paid  to  individuals  for  special  service  which  only  takes  a 
portion  of  their  time  from  outside  employment  or  business. 

{h)  To  agents  Avhose  compensation  as  of  January  1, 1918,  was  upon 
a  commission  basis  or  upon  a  combination  of  salary  and  commis- 
•sions  (not  including  express  or  outside  commissions). 

(<?)  To  agents  whose  duties  are  supervisory  and  who  do  not  per- 
form routine  office  work,  nor  the  small  nontelegraph  stations  (except 
where  they  are  now  included  in  agreements)  which,  on  account  of 
the  varying  character  and  extent  of  their  work  and  responsibilities, 
can  not  be  intelligently  treated  as  a  class. 

The  Federal  Manager  on  each  railroad  is  hereby  instructed  to  con- 
sider the  individual  cases  of  the  smaller  nontelegraph  stations,  or 
stations  paid  on  a  commission  basis  or  on  a  combination  of  salary 
and  commission,  both  as  to  compensation  and  working  conditions, 
with  committees  of  employees,  and  where  agreement  can  be  reached 
are  authorized  to  put  the  same  into  effect. 

In  case  of  disagreement,  either  as  to  compensation  and  or  working 
conditions,  or  as  to  whether  a  station  comes  properly  under  the  terms 
of  this  article,  the  exact  points  of  such  disagreement  shall  be  re- 
ported to  the  Board  of  Railroad  Wages  and  Working  Conditions 
through  the  Regional  Director  for  consideration  and  recommenda- 
tion to  me. 

Article  V. 

H0T7RS   or   service — OVERTIME   AND    CALLS. 

{a)  Eight  consecutive  hours,  exclusive  of  the  meal  hour,  shall  con- 
stitute a   day's   work,  except  that   where  two  or  more  shifts   are 


271 

worked  eight  consecutive  hours  with  no  allowance  for  meals  shall 
constitute  a  day's  work. 

(h)  Overtime  shall  be  computed  at  the  rate  of  time  and  one-half 
time.  Even  hours  shall  be  paid  for  at  the  end  of  each  pay  period, 
fractions  thereof  will  be  carried  forward. 

(c)  When  notified  or  called  to  work  outside  of  established  houi-s, 
employees  will  be  paid  a  minimum  allowance  of  two  hours  at  over- 
time rate. 

(d)  Employees  will  not  be  required  to  suspend  work  during  regu- 
lar hours  or  to  absorb  overtime. 

Article  YI. 

united  states  mail. 

When  the  carrying  of  United  States  mail  and  parcel  post  by  the 
employees  herein  specified  becomes  unduly  burdensome  or  interferes 
with  the  proper  operation  of  trains,  they  will  be  relieved  from  such 
work. 

Article  VII. 

DISCIPLINE  AND  GRIEVANCES. 

(a)  An  employee  disciplined,  or  who  considers  himself  unjustly 
treated,  shall  have  a  fair  and  impartial  hearing,  provided  written 
request  is  presented  to  his  immediate  superior  within  five  (5)  days 
of  the  date  of  the  advice  of  discipline,  and  the  hearing  shall  be 
granted  within  five  (5)  days  thereafter. 

(h)  A  decision  will  be  rendered  within  seven  (7)  days  after  com- 
pletion of  hearing.  If  an  appeal  is  taken,  it  must  be  filed  with  the 
next  higher  official  and  a  copy  furnished  the  official  whose  decision 
is  appealed  within  five  (5)  days  after  date  of  decision.  The  hearing 
and  decision  on  the  appeal  shall  be  governed  by  the  time  limits  of 
the  preceding  section. 

(c)  At  the  hearing,  or  on  the  appeal,  the  employees  msiy  be  as- 
sisted by  a  committee  of  employees,  or  by  one  or  more  duly  accredited 
representatives. 

((/)  The  right  of  appeal  by  employees  or  representatives,  in  regu- 
lar order  of  succession  and  in  the  manner  prescribed,  up  to  and  in- 
clusive of  the  highest  official  designated  by  the  railroad  to  whom 
appeals  may  be  made  is  hereby  established. 

(e)  An  employee  on  request  will  be  given  a  letter  stating  the  cause 
of  discipline.  A  transcript  of  the  evidence  taken  at  the  investigation 
or  on  the  appeal  will  be  furnished  on  request  to  the  employee  or 
representative. 

(/)  If  the  final  decision  decrees  that  charges  against  the  employee 
were  not  sustained,  the  record  shall  be  cleared  of  the  charge ;  if  sus- 


272 

pended  or  dismissed,  the  employee  will  be  returned  to  former  posi- 
tion and  paid  for  all  time  lost. 

{g)  Committees  of  employees  shall  be  granted  leave  of  absence 
and  free  transportation  for  the  adjustment  of  differences  between  the 
railroad  and  the  employees. 

(A)  Where  the  time  limits  in  discipline  and  grievance  rules  now 
in  effect  are  more  extensive  they  may  be  preserved. 

Article  VIII. 

RULES    FOR   APPLICATION    OF   THIS    ORDER. 

{a)  The  pay  for  female  employees,  for  the  same  class  of  work, 
^hall  be  the  same  as  that  of  men,  and  their  working  conditions  must 
be  healthful  and  fitted  to  their  needs.  The  laws  enacted  for  the 
government  of  their  employment  must  be  observed. 

(?>)  If  the  operation  of  this  order  creates  either  unreasonably  low, 
or  excessively  high  rates,  for  service,  individual  cases  and  circum- 
stances considered,  it  will  be  the  duty  of  the  Board  of  Railroad 
Wages  and  Working  Conditions  to  investigate,  on  complaint,  and 
recommend  equitable  treatment  therefor. 

(e)  Vacations  with  pay  are  abolished,  effective  January  1,  1919. 

Article  IX. 

INTERPRETATION  OF  THIS  ORDER. 

The  rates  of  pay  and  rules  herein  established  shall  be  incorporated 
into  existing  agi'eements  and  into  agreements  which  may  be  reached 
in  the  future,  on  the  several  railroads;  and  should  differences  arise 
between  the  management  and  the  employees  of  any  of  the  railroads 
as  to  such  incorporation,  intent,  or  application  of  this  order,  such 
question  of  differences  shall  be  referred  through  the  Director  of  the 
Division  of  Labor  as  prescribed  in  Supplements  6  and  6a  to  General 
Order  Xo.  27  for  decision,  subject  always  to  review  by  the  Director 
General. 

Agreements  or  practices,  except  as  changed  by  this  order,  remain 
in  effect. 

In  reaching  the  conclusions  upon  which  this  order  is  based,  I  have 
given  special  considsration  to  the  problem  presented  of  work  on 
Sundays  and  holidays.  I  am  in  full  sympathy,  as  every  reasonable 
man  must  be,  with  the  natural  desire  of  the  employees  to  be  re- 
leased from  Sunday  and  holiday  labor  as  far  as  possible.  Not  only 
are  employees  the  better  for  such  periods  of  rest  and  recreation,  but 
they  naturally  prefer  for  that  purpose  Sundays  and  holidays,  be- 
cause all  the  habits  of  our  people  are  so   adjusted  that   lest   and 


273 

recreation  are  more  feasible  and  satisfactory  on  those  days  than 
on  other  days. 

I  am  satisfied  that  in  the  i^ast  there  has  been  a  gi-eat  deal  of 
imnecessary  work  on  Sundays  and  holidays,  and  that  methods  can 
and  must  be  adopted  to  confine  such  work  in  the  future  to  what  is 
necessary.  At  the  same  time  we  must  face  the  fact  that  the  entire 
public  expects  the  railroads  to  be  operated  on  Sundays  and  holidays, 
as  well  as  on  other  days;  hence  it  is  impossible  to  adopt  any  plan 
which  will  eliminate  Sunday  and  holiday  labor. 

This  order  which  I  am  promulgating  will,  in  itself,  go  far  towards 
eliminating  Sunday  and  holiday  work  wherever  practicable,  and 
towards  reducing  such  work  where  it  can  not  be  eliminated  to  the 
fewest  number  of  hours.  This  will  result  from  the  fact  that  hereafter 
all  such  work  will  be  paid  on  an  hourly  basis  instead  of  on  a  monthly 
basis,  as  has  been  true  in  the  past  to  a  considerable  extent.  Therefore, 
the  employing  officer  will  realize  that  he  must  pay  additionally  for 
every  hour  of  Sunday  and  holiday  work,  and  his  anxiety  to  prevent 
umiecessar}'  "expense  will  be  a  strong  inducement  to  eliminate  un- 
necessary work  on  those  days.  I  regard  this  as  a  gi'eat  step  forward, 
and  I  believe  I  am  justified  in  expecting  that  it  will  bring  about  a 
marked  reduction,  in  Sunday  and  holiday  work  of  an  avoidable 
character. 

I  propose  to  supplement  this  action  by  definite  orders  that  a  special 
study  must  be  made  for  the  purpose  of  eliminating  Sunday  and  holi- 
day work  wherever  practicable  and,  where  it  can  not  be  eliminated, 
of  minimizing  it  to  the  fewest  number  of  hours.  I  believe  the  special 
effort  whicli  will  consequently  be  made  in  this  direction  will,  coupled 
with  the  strong  inducement  arising  from  the  new  basis  of  payment, 
bring  about  an  early  and  substantial  reform  in  this  important  matter. 

Employees  who  have  heretofore  had  to  work  on  Sundays  tind  holi- 
days will  get  through  this  order  a  direct  compensation  for  that  con- 
dition, by  reason  of  the  fact  that  their  hourly  rates  of  pay  in  the 
future  will  be,  to  a  large  extent,  substantially  increased,  as,  from 
an  examination  of  Article  I,  it  will  be  seen  that  in  determining  the 
hourly  wage  a  divisor  of  306  days  has  been  used,  which  will,  in  a 
large  measure,  compensate  for  punitive  Sunday  and  holiday  over- 
time. 

It  has  not  been  practicable  to  adopt  a  plan  for  paying  a  punitive 
overtime  rate  for  time  worked  on  Sundays  and  holidays.  The  ob- 
ject for  such  punitive  allowances  is  to  impose  a  penalty  or  punish- 
ment for  the  work  to  which  the  allowances  attach.  In  the  nature  of 
things,  it  is  unjustifiable  to  impose  such  punishment  in  respect  of 
work  which  can  not  be  avoided.  Such  punitive  allowance  is  not  nec- 
essary to  cause  the  elimination  of  such  work,  or  its  reduction  to  a 
105889°— 19 18 


274 

minimum,  because  ^liat  result  can  and  will  be  broug-ht  about  by  the 
adoption  of  the  hourly  rates  and  special  instructions  Avhich  will  be 
issued  to  reduce  Sunday  and  holiday  work,  where  practicable. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Interpretation  No.  1  of  General  Order  Xo.  27. 

Washington,  June  llfy  1918. 
The  following  reconunendation  of  Railroad  Board  of  Adjustment 
No.  1,  in  the  matter  of  consiruction  of  General  Order  No.  27,  relating 
to  the  bases  of  pay  for  yard  engineers,  yard  firemen,  yard  conductors 
or  foremen,  and  yard  brakemen  or  helpers,  is  approved  and  will  be 
observed  in  the  application  of  rates  of  pay  under  said  order : 

Referring  to  your  letter  of  this  date  transmitting  a  communication  from  tlie 
cWef  executives  of  tlie  four  organizations,  asl^ing  for  a  construction  of  General 
Order  No.  27,  in  so  far  as  tliis  order  relates  to  the  bases  of  pay  for  yard  engi- 
neers, yard  firemen,  yard  conductors  or  foremen,  and  yard  brakemen  or  helpers. 

As  these  four  classes  of  employees  had  a  guaranteed  minimum  day's  pay, 
irrespective  of  how  expressed  in  schedules,  it  is  the  judgment  of  this  board  that 
the  increases  granted  by  General  Order  No.  27  should  be  applied  to  such  em- 
ployees upon  the  guaranteeil  minimum  day's  pay  of  December,  191.5,  in  view  of 
paragraph  8,  section  F,  article  2,  of  that  order,  which  reads  as  follows: 

"  Reductions  in  hours  between  December  31,  191-5,  and  .January  1.  1918,  are 
not  to  be  regarded  as  increases  in  pay." 

The  increases  for  these  classes  of  employees  should,  therefore,  be  computed 
upon  the  table  given  in  section  B  of  article  2  of  General  Order  No.  27,  and  it  is 
recommended  that  it  be  so  ordered. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Interpretation  No.  2  of  General  Order  No.  27. 

Washington,  June  llf,  1918. 

The  following  bases  will  be  observed  in  the  application  of  rates 
of  pay  under  General  Order  No.  27 : 

All  persons  employed  in  any  capacity,  and  receiving  less  than 
$250  jx'r  month  in  salary,  will  receive  the  increases  named  in  the 
Director  General's  General  Order  No.  27,  unless  specifically  excluded 
therein. 

PASSENGER    SERVICE. 

All  conductors,  baggagemen,  flagmen,  and  brakemen  paid  on  the 
mileage  basis  and  performing  more  than  the  minimum  daily  mile- 
age will  be  paid  under  the  provisions  of  section  E,  article  2. 


275 

All  conductors,  assistant  conductors,  ticket  collectors,  baggagemen, 
flagmen,  and  brakemen  paid  under  the  monthly  guarantee  of  the 
eastern  and  southeastern  territory  will  be  paid  under  the  provisions 
of  section  A,  article  2,  and  the  daily  rate  will  be  one-thirtieth  of  the 
monthly  rate. 

All  conductors,  baggagemen,  flagmen,  and  brakemen  paid  on  the 
monthly  basis  will  be  paid  under  the  provisions  of  section  A,  article  2. 

LOCAL   FREIGHT    SERVICE. 

All  conductors,  engineers,  firemen,  flagmen,  and  brakemen  paid 
on  the  mileage  basis  will  be  paid  under  the  provisions  of  section  E, 
article  2. 

Local  freight  conductors,  engineers,  firemen,  flagmen,  and  brake- 
men  paid  on  the  monthly  basis  will  be  paid  under  the  provisions  of 
section  A,  article  2. 

THROUGH    FREIGHT    SERVICE. 

Conductors,  engineers,  firemen,  flagmen,  and  brakemen  paid  on  the 
mileage  basis  will  be  paid  under  the  provisions  of  section  E,  article  2. 

Conductors,  engineers,  firemen,  flagmen,  and  brakemen  paid  on  the 
monthly  basis  will  be  paid  under  the  provisions  of  section  A,  article  2. 

WORK    TRAINS. 

Conductors,  engineers,  firemen,  flagmen,  and  brakemen  paid  on  the 
mileage  basis  will  be  paid  under  the  provisions  of  section  E,  article  2. 

Conductors,  engineers,  firemen,  flagmen,  and  brakemen  paid  on  the 
monthly  basis  will  be  paid  under  the  provisions  of  section  A,  article  2. 

SPECIFIED  TRIP  RATES. 

In  passenger,  through  freight,  or  local  freight  the  increases  in 
trip  rates  shall  take  the  percentages  applicable  to  each  class  of  service 
respectively. 

SPECIAL  ALLOWANCES. 

All  arbitrary  or  special  allowances,  previousl}^  paid  on  the  hourly 
basis,  will  be  paid  at  the  new  hourly  rate. 

Arbitraries  or  special  allowances,  previously  paid  on  the  basis  of 
mileage,  will  be  paid  on  the  new  mileage  rates. 

If  the  schedule  amount  bears  no  relation  to  miles  or  hours,  such 
arbitrary  or  special  allowances  will  be  increased  in  accordance  with 
the  percentage  shown  under  section  E,  article  2. 

Engines  which  have  come  into  the  service  since  1915,  on  which 
rates  have  been  applied — for  the  purpose  of  computation  under  Gen- 


276 

cral  Order  No.  27 — consider  such  rates  as  being  applicable  December 
31.  1915.  and  apply  appropriate  increases  from  January,  1918. 

The  negotiated  rate  since  the  arbitration  of  the  engineers  and 
firemen  in  the  East  and  West,  for  transfer  service — for  example, 
the  $4.50  rate  for  engineers  and  the  $3  rates  for  firemen  in  the 
western  territory  shall  be  increased  under  section  B  of  article  2. 
Where  through  freight  rates  apply  to  transfer  service  the  increases 
under  section  E,  article  2,  will  apply. 

Where  the  guaranteed  daily  minimum  is  an  arbitrary  rate,  and  is 
not  based  on  hours  or  miles,  engineers  and  firemen  will  be  paid  the 
rat©  under  the  provisions  of  section  B,  article  2.  Where  the  guar- 
anteed minimum  is  based  on  mileage  engineers  and  firemen  shall  be 
paid  the  rate  under  the  provisions  of  section  E,  article  2, 

HOSTLERS. 

The  rates  in  section  B,  article  2,  shall  apply  to  hostlers,  based  upon 
rates  in  effect  December,  1915. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Interpretation  No.  3  to  General  Order  No.  27,  and  to  Sup- 
plement No.  4,  Addenda  Nos.  1  and  2,  Interpretation  No.  1 
AND  Amendment  No.  1  Thereto. 

Washington,  D.  C,  September  26,  1918. 

method  of  applying  increases  to  pieceworkers. 

Article  I. 

(«)  The  increases  provided  for  in  General  Order  No.  27  apply  to 
each  hour  worked  and  not  to  piecework  prices  per  item  or  operation. 

(Jb)  Overtime  hours,  prior  to  August  1,  1918,  vnll  be  paid  for  at 
the  rate  in  effect  as  of  December  31,  1917,  and  up  to  and  including 
July  31,  1918;  from  August  1,  1918,  at  the  rate  of  one  and  one-half 
times  the  average  straight-time  hourly  piecework  earnings  for  the 
current  pay  period,  provided  that  the  straight-time  piecework  earn- 
ings plus  one-half  additional,  equals  the  guaranteed  minimum  at  the 
hourly  rate  of  one  and  one-half  time. 

{e)  Any  increase  in  wages  due  to  increased  rates  of  compensation 
gi-anted  between  January  1,  1916,  and  December  31,  1917,  shall  be 
deducted  from  the  amount  of  increase  provided  for  in  General 
Order  No.  27,  but  in  no  case  shall  such  deduction  operate  to  reduce 
earnings  based  on  rates  in  effect  as  of  December  31,  1917. 

{d)  In  the  absence  of  established  standard  hourly  rates  for  any  one 
or  more  of  the  seven  classifi  rat  ions  designated  in  Supplement  No.  4, 


277 

the  going  rate  in  each  craft  in  accordance  with  the  classification  exist- 
ing prior  to  the  application  of  Supplement  No.  4  for  mechanics  or 
helpers  at  each  point  on  each  of  the  several  railroads  shall  be  used 
as  the  base  rate  to  which  will  be  added  the  increases  provided  for  in 
Section  C,  Article  II,  General  Order  No.  27. 

(e)  Example  1. — Assume  that  in  Yard  B,  75  wood  freight  car 
builders  or  repairers  are  employed,  the  base  hourly  rates  in  Decem- 
ber, 1915,  were: 

15  at  32  cents  per  hour. 
31  at  33  cents  per  hour. 
17  at  34  \  cents  per  hour. 
12  at  36  cents  per  hour. 

Thirty-three  (33)  cents  thus  becomes  the  going  rate  for  the  basis 
of  computing  the  hourly  increase  for  all  wood  freight-car  builders 
or  repairers  in  Yard  B.  General  Order  No.  27,  Article  II,  Section  C, 
using  the  going  rate  of  33  cents,  estabhshes  a  rate  of  46.75,  or  13.75 
cents  increase  over  the  December,  1915,  hourly  rate.  Between  Janu- 
ary!, 1916,  and  December  31,  1917,  increases  amounting  to  9  cents  per 
hour  had  been  put  into  effect.  The  net  increase  established  by  Gen- 
eral Order  No.  27  is  therefore  4.75  cents  per  hour  to  hourly  workers, 
and  represents  the  total  increase  per  hour  to  pieceworkers  of  the 
same  class  in  Yard  B.  The  same  method  of  procedure  wiU  apply 
to  each  of  the  respective  groups  of  employees,  such  as  upholsterers, 
coach  carpenters,  cabinetmakers,  passenger  or  freight  steel  car  bodv 
builders  or  repairers,  truck  builders  or  repairers,  coach  painters, 
locomotive  painters,  locomotive  carpenters,  molders,  core-makers, 
electricians,  signal  men  and  signal  maintainers,  tinners,  pipe  fitters, 
coppersmiths,  sheet-metal  workers,  and  all  men  classified  and  used 
as  helpers. 

(/)  Where  piecework  rates  or  pieceworkers  received  no  increase 
between  January  1,  1916,  and  December  31,  1917,  it  is  evident  that 
the  average  earnmg  rate  was  sufficiently  in  excess  of  the  hourly  rate 
to  cover  any  increases  that  may  have  been  granted  homely  workers. 
In  determining  the  increase  to  such  pieceworkers,  they  shall  receive 
the  same  increase  per  hour  as  accrues  to  the  hourly  worker  under 
General  Order  No.  27,  illustrated  herein  by  example  1,  paragraph  {e). 

ig)  The  application  of  increases  to  machinists,  boilermakers,  and 
blacksmiths,  who  are  on  the  piecework  basis,  shall  be  as  above  out- 
lined (see  example  2),  except  where  the  establishment  of  the  mini- 
mum rate  of  55  cents  per  hour  is  less  than  the  increase  provided  for 
in  Section  C,  Article  II,  General  Order  No.  27,  in  which  case  the 
greater  increase  will  apply.     (See  example  3.) 

(Ji)  Example  2. — In  December,  1915,  machinists  in  Shop  C  were 
paid  a  going  rate  of  35  cents  per  hour.  Section  C,  Article  II,  Gen- 
eral Order  No.  27,  establishes  a  rate  of  49.50  cents  per  hour.     This 


278 

would  automatically  go  to  the  minimum  rate  of  55  cents  per  hour, 
or  20  cents  increase  over  the  December,  1915,  hourly  rate.  Between 
January  1,  1916,  and  December  31,  1917,  increases  amounting  to  9 
cents  per  hour  had  been  put  into  effect.  The  net  increase  established 
by  General  Order  No.  27  is  therefore  11  cents  per  hour  to  hourly 
workers  and  represents  the  total  increase  per  hour  to  the  machinists 
on  piecework  in  Shop  C. 

(i)  Example  3. — In  December,  1915,  machinists  in  Shop  D  were 
paid  a  going  rate  of  42  cents  per  hour.  The  new  rate  provided  for 
in  Section  C,  Article  II,  of  General  Order  No.  27,  is  58.25  cents  per 
hour,  making  an  increase  of  16.25  cents  per  hour  over  the  December, 
1915,  hourly  rate.  Between  January  1 ,  1916,  and  December  31,  1917, 
increases  amounting  to  9  cents  per  hour  had  been  put  into  effect.  The 
net  increases  established  by  General  Order  No.  27  is  therefore  7.25 
cents  per  hour  to  hourly  workers  and  represents  the  total  increase 
per  hour  to  the  machinists  on  piecework  in  Shop  D. 

{'])  If  the  increases  for  pieceworkers  under  General  Order  No.  27, 
added  to  their  average  hourly  straight  time  piecework  earnings,  .by 
pay  period,  do  not  equal  the  minimum  hourly  rates  established  for 
hourly  workers  of  the  same  class,  the  back  pay  due  such  piece- 
workers, by  pay  periods,  January  1,  1918,  to  July  31,  1918,  inclusive, 
will  be  computed  on  the  basis  of  the  minimum  hourly  rates  apphcable 
to  the  respective  classes,  as  per  Supplement  No.  4. 

(Ji)  Example  4- — Pieceworker  E,  guaranteed  a  58  cent  minimum 
hourly  rate  by  Supplement  4,  worked  208  straight  time  hours  in 
March,  1918;  his  average  piecework  earnings  for  this  pay  period  were 
55  cents  per  hour,  includmg  the  increase  under  General  Order  No.  27. 
Pieceworker  E  therefore  receives  the  minimum  rate  of  58  cents  per 
hour  for  the  March  pay  period. 

(Z)  Example  5. — Pieceworker  F,  guaranteed  a  58  cent  minimum 
hourly  rate  by  Supplement  4,  worked  208  straight  time  hours  in 
March,  1918;  his  average  piecework  earnmgs  for  this  pay  period 
equals  60  cents  per  hour,  including  the  increase  under  General  Order 
No.  27.  Pieceworker  F,  having  exceeded  the  minimum  rate  of  58 
cents  per  hour  for  the  March  pay  period,  receives  back  pay  at  the 
60  cent  rate. 

(m)  Example  6. — Pieceworker  G,  guaranteed  a  58  cent  minimum 
hourly  rate  by  Supplement  4,  worked  a  total  of  268  hours  in  August, 
1918,  divided  as  follows:  50  straight  time  hours  on  hourly  v/ork  at 
58  cent  rate,  158  straight  time  hours  on  piecework,  average  earnhigs 
per  hour  65  cents,  20  hours'  overtime  on  hourly  work  at  the  rate  of 
one  and  one-half  time,  or  58  plus  29,  equaling  87  cents  per  hour,  and 
40  hours'  overtime  on  piecework,  or  65  plus  32.50,  equaling  97.50 
cents  per  hour  (as  per  Art.  II,  Sec.  A)  the  total  earnings  for  the 
August  pay  period  are  as  follows: 


279 

50  horns  at  58<1;  per  hour $29. 00 

158      "      "  65(t     "      "   102.70 

20      "      "  87(t    "       "   17.40 

40      "       "  97.504-       "   39.00 

Total 188. 10 

GEXERAL    APPLICATIOX    OF     INCREASES     SUPPLEMENT    4    TO    GENERAL 

ORDER   27. 

Article  II. 

{a)  The  increases  provided  for  in  Supplement  No.  4  to  General 
Order  No.  27  apply  only  to  hourly,  daily,  weekly,  or  monthly  rates, 
with  the  proviso  that  in  no  case  shall  a  pieceworker  be  compensated 
for  service  renderetl  from  January  1,  1918,  to  July  31,  1918,  or  there- 
after, at  a  less  rate  per  hour,  for  each  straight  time  hour  worked, 
than  the  minimum  rate  established  for  the  hourly  worker  as  per  the 
respective  classifications.  Effective  August  1,  1918,  the  one  and  one- 
half  time  rate  for  overtime  apphes  to  pieceworkers  as  well  as  to 
hourly  rated  employees, 

(&)  Increases  provided  for  in  General  Order  No.  27  for  hourly, 
daily,  weekly,  and  monthly  paid  employees,  were  canceled  with  the 
issuance  of  Supplement  No.  4,  and  m  no  manner  refer  to  or  affect 
the  mcreases  provided  for  in  Supplement  No.  4  to  General  Order 
No.  27. 

(c)  The  hours  of  service  and  overtime  provisions  of  Supplement 
4,  Article  IV,  Section  2,  do  not  apply  to  supervisory  forces  on 
monthly  salary,  referred  to  in  Supplement  4,  Article  III,  Section  5. 

(d)  Monthly  supervisory  forces  specified  in  Supplement  4,  Article 
III,  Section  5,  assigned  to  mspect  new  equipment  imder  construc- 
tion by  contract,  shall  receive  the  salary  increase  of  Forty  (S40) 
dollars  per  month. 

(e)  Excepting  salaried  supervisory  forces  and  coach  cleaners, 
employees  comuig  within  the  classifications  specified  in  Supple- 
ment No.  4  to  General  Order  No.  27,  shall  be  paid  for  overtime  as 
provided  in  Section  2,  Article  IV  of  Supplement  No.  4. 

(/)  Employees  voluntarily  leaving  the  service. — The  amount  ac- 
cruing under  the  provisions  of  Supplement  4  to  General  Order  No. 
27  wiU  not  accrue  to  those  employees  who  left  the  sei-vice  voluntarily 
to  accept  or  secure  employment  at  some  other  point  on  the  same 
railroad  or  on  another  railroad,  or  elsewhere,  because  remaining  in 
the  sei-vice  at  the  point  employed,  unless  transferred,  was  the  con- 
sideration upon  which  the  promise  to  make  the  increases  effective 
as  of  January  1,  1918,  was  based. 


280 
Article  III. 

RA.TES    BASED    UPON    YEARS    OF    EXPERIENCE. 

Supplement  No.  4,  Article  II,  Sections  2,  2-A,  and  2-B. 

(a)  Employees  performing  work  recognized  as  mechanics'  work 
in  the  respective  trades,  who,  by  agreement  with  duly  authorized 
committees  representing  the  craft  or  crafts,  have  had  their  rates 
leveled  up  to  that  of  the  mechanic,  shall  receive  the  mechanics'  rate 
as  per  Article  II,  Sections  1  and  1-A;  otherwise  Article  II,  Sections 
2,  2-A  and  2-B  will  apply.  The  period  of  experience  on  mechanics' 
work,  in  the  trade  employed,  shall  be  cumulative. 

Example  7. — Employee  H  worked: 

12  months  on  machinists  work  for  railroad  C. 

6       "         "  "  "     in  navy  yards  D. 

12       "         "  "  "     in  mauiifacturing  plant  E. 

18      "         "  "  "      for  railroad  by  whom  now  employed. 

Total,  4  years. 

Such  employees  should  be  paid  the  machinists'  rate. 

(h)  Nothing  in  the  above  section  shall  be  construed  to  mean  that 

mechanics  of  the  respective  trades  who  have  qualified  a,s  such  in  other 

industries,  shall  be  paid  less  than  the  muiimimi  rates  specified  in 

Article  II,  Sections  1  and  1-A  of  Supplement  No.  4,  upon  entering 

railroad  service. 

Article  IV. 

EXPENSE    ALLOWANCE. 

Sections  4  and  5,  Article  IV,  Sup.  No.  4  to  General  Order  No.  27. 

The  allowance  for  expenses  provided  for  in  Section  4,  Supplement 
No.  4  to  General  Order  No,  27,  is  the  same  as  shoAvii  m  Section  5, 
and  is  at  the  rate  of  $2.00  per  day  for  three  meals  and  lodging;  50 
cents  per  meal,  50  cents  for  lodging.  It  is  not  intended  to  make  tliis 
feature  retroactive  prior  to  August  1,  1918. 

Article  V. 

SUPERVISORY    FORCES. 

Section  4,  Article  III,  Supplement  4  to  General  Order  27. 

This  section  applies  to  minor  supervisory  forces  who  are  held 
responsible  for  the  work  of  their  gang,  have  been  so  recognized,  and 
who  shall  receive  5  cents  per  hour  in  excess  of  the  minimum  hourly 
rate  estabhshed  for  the  craft. 

Article  YI. 

WHEEL    SHOP    employees. 

General  Order  27, -Supplement  4,  .Vrticle  I,  Section  1  and  1-B. 

{a)  Employees  boring  and  turning  wheels,  and  turning  axles  in 
wheel  shop,  are  classified  as  macliinists  by  Section  1,  Article  I  of 
Supplement  No.  4  to  General  Order  No.  27. 


281 

(h)  Employees  pressing  on  and  off  wheels  are  classified  as  machin- 
ists' helpers  by  Section  1-B,  Article  I  of  Supplement  No.  4  to  Gen- 
eral Order  No.  27,  and  receive  an  increase  of  13  cents  per  hour  over 
rate  in  effect  January  1,  1918,  prior  to  appUcation  of  General  Order 
No.  27.  vnth  a  minimum  guaranteed  rate  of  45  cents  per  hour. 

Article  VII. 

FLUE    WORK. 

Supplement  No.  4,  Article  I,  Section  2  and  2-B. 

(a)  Flue  work,  boiler  department,  includes  flue  Aveldei-s  under 
boiler  foremen. 

(b)  Heaters  and  lieipers  assisting  welders  shall  be  classed  as  boiler- 
maker  helpers. 

Article  VIII. 

RIVET    HEATERS. 

(a)  Include  rivet  heaters  in  Supplement  No.  4,  Ai-ticle  I,  Section 
2-B.  Rivet  heaters  under  18  years  of  age  shall  be  paid  25  cents 
per  hour  until  they  reach  the  age  of  18,  and  thereafter  helpers'  rates. 

(h)  Rivet  heaters  in  Supplement  No.  4,  Article  I,  Section  6-B, 
under  18  years  of  age  shall  be  paid  25  cents  per  hour  until  they  reach 
the  age  of  18,  and  thereafter  helpers'  rates. 

Article  IX. 

ELECTRICAL    WORKERS. 

Supplement  No.  4,  Article  I,  Section  5  and  5-A. 

It  is  not  necessary  for  an  electrical  worker  to  be  competent  to 
perform  aU  items  of  work  specified.  Employees  skilled  in  any  of 
this  work  shall  be  paid  the  rate  estabhshed  for  the  respective  class. 

Article  X. 

MATERIAL    CARRIERS    AND    HELPERS. 

(a)  Material  carriers  in  Supplement  No.  4,  Article  I,  Section  6-B, 
applies  only  to  employees  regularly  engaged  in  selecting  and  dis- 
tributing material  to  mechanics  in  car  department. 

(b)  Laborers  shall  not  be  classified  as  helpers  in  the  seven  basic 

trades,   unless  they  actually  perform  work  recognized   as  helpei^* 

work. 

Article  XI. 

LOCOMOTIVE  CRANE  OPERATORS. 

Section  6,  .Vrticle  I,  Supplement  No.  4  to  General  Order  No.  27. 

Locomotive  crane  operators,  when  employed  in  the  car  and  locomo- 
tive shop  yards,  shall  be  considered  under  the  same  classification  as 


282 

"wrecking  derrick  engineer"  in  Section  6,  Article  I,  Supplement  No. 

4  to  General  Order  No.  27,  and  receive  13  cents  per  hour  over  the 

rate  in  effect  Januar}^  1,  1918,  prior  to  the  appHcation  of  General 

Order  No.  27,  with  a  guaranteed  niuiimum  of  58  cents  per  hour. 

(Where  employed  in  other  departments  they  shall  be  considered 

under  the  same  classification  as  pile  driver,  ditching  and  hoisting 

engineers,  in  Article  I,  Section  b  of  Supplement  No.  8  to  General 

Order  No.  27.) 

Article  XII. 

DERRICK    ENGINEER. 

Section  6,  Article  I,  Supplement  No.  4  to  General  Order  No.  27. 

"Wrecking  Derrick  Engmeers"  covers  the  engineer  operating  a 
power-driven  crane  employed  principally  for  clearing  up  wrecks. 

Ajrticle  XIII. 

MOLDERS    AND    HELPERS. 

CUPOLA   TENDERS. 

Supplement  No.  4,  Article  I,  Sections  7  and  7-B. 

(a)  A  cupola  tender  is  interpreted  to  be  one  who  supervises  the 
cupola  and  prescribes  the  charge,  the  fuel  to  be  used  and  drawing 
the  melt. 

(h)  Cupola  tender  helpers  shall  receive  an  increase  of  13  cents  per 
hour  over  rates  in  effect  as  of  January  1,  1918,  prior  to  the  applica- 
tion of  General  Order  No.  27,  with  a  guaranteed  minimum  rate  of 
45  cents  per  hour. 

(g)  Employees  in  charge  of  brass  melting  in  foundry  shall  receive 
not  less  than  the  molder's  minimum  rate,  and  helpers  the  same  as 
helpers  in  Section  (^)  of  this  Article. 

Article  XIV. 

These  interpretations  shall  apply  to  all  addenda,  amendments,  and 
interpretations  to  Supplement  No.  4  to  General  Order  No.  27,  from 
their  respective  effective  dates. 

W.  G.  McAouo, 
Director  General  of  Railroads. 


Interpretation  No.  4  to  General  Order  No.  27. 

Washington,  D.  C.  Novernher  29,  1918. 
Employee's  claim.— That  he  was  in  the  employ  of  the  railroad 
from  a  date  prior  to  January  1.  1918,  up  to  6  a.  m-,  June  1.  1918. 


283 

Employer's  claim.— That  employee's  tour  of  duty  was  from  6 
p.  m.  one  day  until  6  a.  m.  the  next,  and  that  the  last  "day"  on 
which  the  employee  worked  was  May  31,  1918,  although  his  hours 
extended  to  6  a.  m.,  June  1,  1918 ;  that  the  employee  left  the  service 
voluntarily. 

Decision. — Employee  having  been  in  the  service  on  May  25,  1918, 
the  date  of  the  issuance  of  General  Order  No.  27,  is  entitled  to  back 
pay  for  services  rendered  from  January  1,  1918,  to  the  date  he  left 

the  service. 

W.  G.  McAdoo, 
Director  General  of  RoJWroads. 


Interpretation  No.  5  to  General  Order  No.  27. 

Washington,  D.  C,  Navember  ^P,  1918. 

Employee's  claim.— On  and  prior  to  December  31,  1915,  employee 
occupied  position  as  agent  at  a  certain  salary.  In  July,  1917,  his 
position  was  changed  at  the  same  salary  and  continued  until  June, 
1918.  Employee  claims  the  increase  afforded  by  General  Order  No. 
27  upon  his  salary  as  of  December  31,  1915. 

Employer's  claim. — The  position  occupied  by  the  employee  on 
May  25,  1918,  was  at  a  lower  salary  on  December  31.  1915.  than  was 
paid  to  the  position  occupied  by  the  employee  on  May  25,  1918; 
therefore,  the  increase  afforded  by  General  Order  No.  27  should  be 
based  upon  the  salary  of  the  position  and  not  upon  the  salary  of 
the  man. 

Decision.— General  Order  No.  27,  Article  II,  Section  F,  para- 
graph 1,  explicitly  provides  that  the  wage  runs  with  the  place. 
Therefore,  the  increase  should  be  applied  to  the  salary  which  the  po- 
sition paid  on  December  31,  1915. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Interpretation  No.  6  to  General  Order  No.  27. 

Washington,  Decemher  17 ^  1918. 

Position  of  employee. — A  station  agent  on  a  certain  railroad  has 
been  paid  a  salary  of  $20  per  month,  and  it  is  claimed  by  this  em- 
ployee that  Article  II,  section  F,  paragraph  12,  of  General  Order 
No.  27,  does  not  apply  to  his  case,  in  that  the  service  he  renders  is 
not  special  service.,  as  he  is  performing  all  work  of  an  agent,  and  is 
subject  to  call  the  entire  day,  performing  work  as  it  transpires. 

Position  or  the  company. — The  company  claims  that  the  em- 
ployee in  question  devotes  only  a  portion  of  his  time  to  the  service 


284 

of  the  compan}^  in  tlie  capticitv  of  station  agent  without  telegraph 
service,  and  that  he  is  engaged  in  business  in  the  town  in  which  em- 
ployed, and  that  he  is  not  entitled  to  an  increase  in  wages  under 
Article  II,  section  F,  paragraph  12,  of  General  Order  No.  27. 
The  question  for  interpretation  is — 

In  view  of  the  fact  that  the  claimant  performs  all  of  the  work 
required  at  the  station  employed  and  is  only  paid  $20  per  month,  is 
he  entitled  to  an  increase  under  General  Order  No.  27  ? 

Decision. — The  claimant  is  performing  special  seiwice,  and  is  ex- 
cluded from  increase  in  wages  by  Article  II,  paragraph  12,  section 
F,  of  General  Order  No.  27,  and  paragraph  (a).  Article  IV,  Supple- 
ment 11,  of  (leneral  Order  No.  27,  which  reads  as  follows : 

"The  provisions  of  this  order  will  not  apply  in  cases  where 
amounts  less  than  thirty  ($30.00)  dollars  per  month  are  paid 
to  individuals  for  special  service  which  only  takes  a  portion  of 
their  time  from  outside  employment  or  business." 

^^\  G.  McAdoo, 

Director'  General  of  Railroads. 


Intebpretatiox  No.  7  to  General  Order  I^J^o.  27. 

Washington,  December  17,  1918. 

Claim  of  emplotee. — Prior  to  March  1,  1918,  the  claimant  was 
employed  as  assistant  passenger  and  ticket  agent  at  a  salary  of  $80 
per  month.  His  duties  consisted  of  selling  tickets,  soliciting  pas- 
senger business,  and  acting  as  telegraph  operator. 

On  March  1,  1918,  the  position  of  assistant  being  closed,  the 
employee  claims  "that  he  was  oiRcially  checked  in  as  city  passenger 
and  ticket  agent  by  the  company's  traveling  auditor,  increasing  his 
duties  due  to  the  fact  that  he  had  to  handle  both  positions. 

The  employee  claims  that  he  understood  from  telephone  conver- 
sation Avith  tlie  assistant  passenger  agent  that  he  M'ould  be  checked 
in  temporarily,  as  it  had  not  been  definitely  decided  who  would  be 
appointed  to  the  position.  The  employee  served  in  this  capacity 
from  March  1,  1918,  until  May  1,  1918,  at  which  time  consolidation 
of  certain  ticket  offices  made  it  necessary  for  him  to  go  to  the  con- 
solidated ticket  offices. 

The  claim  of  the  employee  is  that  he  did  not  receive  the  salary  of 
the  city  passenger  ticket  agent,  which  was  $120  per  month,  which 
rate,  under  General  Order  No.  27,  would  have  been  advanced  to 
$131.75,  and  that  he  was  only  paid  his  salaiy  that  he  was  receiving 
as  assistant. 

He  further  claims  that  if  he  had  been  paid  the  salary  of  the  city 
passenger  ticket  agent  for  the  time  served  in  that  capacity,  he  would 


285 

have  been  transferred  to  the  consolidated  ticket  office  at  the  same 
rate,  as  this  was  the  practice  followed  in  transferring  other  em- 
ployees to  the  consolidated  ticket  offices. 

In  other  words,  the  employee  claims  that  his  present  rate  of  pay 
should  be  $131.75  per  month  instead  of  $112.70,  which  rate  was 
ax^plied  in  accordance  with  General  Order  No.  27  to  the  position 
which  formerly  paid  $80  per  month. 

Claim  of  CoMPANY.^The  railroad  company  claims  that  the  em- 
ployee was  assigned  to  the  position  of  city  passenger  and  ticket  agent 
temporaril3^  and  that  they  did  not  consider  that  he  was  entitled  to  an 
increase  based  upon  the  rate  formerly  paid  this  position. 

The  question  for  interpretation  is: 

In  view  of  the  fact  that  the  employee  was  performing  the  work 
of  city  passenger  and  ticket  agent  and  not  receiving  the  rate  applied 
to  this  position,  should  his  rate  under  the  provisions  of  General  Order 
No.  27  be  based  on  the  rate  formerly  paid  to  the  position  he  was 
filling  ? 

Decision. — The  claimant  Avas  from  March  1,  1918,  until  the  date  of 
the  consolidation  of  the  ticket  offices.  May  1,  1918,  in  charge  of  the 
office  and  perfonned  the  duties  of  city  ticket  agent,  and  is  therefore 
entitled  to  the  rate  paid  that  position  plus  increase  in  accordance  with 
the  provisions  of  General  Order  No.  27. 

W.  G.  McAdoo, 
Director  Generol  of  Railroads. 


General  Order  No.  28. 

Washington,  D.  C,  May  25,  1918. 

Whereas  it  has  been  found  and  is  hereby  certified  to  the  Interstate 
Commerce  Commission  that  in  order  to  defray  the  expenses  of  Fed- 
eral control  and  operation  fairly  chargeable  to  railway  operating  ex- 
penses, and  also  to  pay  railway  tax  accruals  other  than  war  taxes,  net 
rents  for  joint  facilities  and  equipment,  and  compensation  to  the  car- 
riers, operating  as  a  unit,  it  is  necessaiy  to  increase  the  railway  oper- 
ating revenues,  and 

Whereas  the  public  interest  requires  that  a  general  advance  in 
iiU  freight  rates,  passenger  fares,  and  baggage  charges  on  all  traffic 
carried  by  all  railroad  and  steamship  lines  taken  under  Federal  con- 
trol under  an  act  of  Congress  approved  August  29,  1916,  entitled 
"An  act  making  appropriations  for  the  support  of  the  Army  for  the 
fiscal  year  ending  June  thirtieth,  nineteen  hundred  and  seventeen, 
and  for  other  purposes,"  shall  be  made  by  initiating  the  necessary 
rates,  fares,  charges,  classifications,  regulations,  and  practices  by 
filing  the  same  with  the  Interstate  Coimnerce  Commission  under 
authority  of  an  act  of  Congress  approved  March  21,  1918,  entitled 


286 

"  An  act  to  provide  for  the  operation  of  transportation  systems  while 
under  Federal  control,  for  the  just  compensation  of  their  owners, 
and  for  other  purposes." 

Now,  therefore,  under  and  by  virtue  of  the  provisions  of  the  said 
act  of  March  21, 1918,  it  is  ordered  that  all  existing  freight  rates,  pas- 
senger fares,  and  baggage  charges,  including  changes  heretofore  pub- 
lished but  not  yet  effective,  on  all  traffic  carried  by  all  said  railroad 
and  steamship  lines  under  Federal  control,  wliether  the  same  be  car- 
ried entirely  by  railroad,  entirely  by  water,  or  partly  by  railroad  and 
partly  by  w^ater,  except  traffic  carried  entirely  by  water  to  and  from 
foreign  countries,  be  increased  or  modified,  effective  June  25,  1918, 
as  to  freight  rates  and  effective  June  10,  1918,  as  to  passenger  fares 
and  baggage  charges,  to  the  extent  and  in  the  manner  indicated  and 
set  forth  in  the  "  Exhibit "  hereto  attached  and  made  part  hereof, 
by  filing  schedules  with  the  Interstate  Commerce  Commission  effec- 
tive on  not  less  than  one  day's  notice. 

Given  under  my  hand  this  the  25tli  day  of  May,  1918. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Freight  Eates. 
Section  1. — class  rates  (domestic). 

{a)  All  interstate  class  rates  shall  be  increased  twenty-five  (25) 
per  cent. 

{h)  All  intrastate  class  rates  shall  be  increased  twenty-five  (25) 
per  cent  where  there  are  no  interstate  class  rates  published  between 
the  same  points,  and  shall  be  governed  by  the  classification,  viz: 
Official  classification,  southern  classification,  or  western  classifica- 
tion, exceptions  thereto  and  minimum  weights  which  generally  gov- 
ern the  interstate  rates  in  the  same  territory,  except  that  the  Illinois 
classification  will  be  used  between  points  in  the  State  of  Illinois. 

(c)  All  intrastate  class  rates  shall  be  canceled  where  there  are 
interstate  class  rates  published  between  the  same  points  and  the 
interstate  rates  as  increased  by  paragraph  {a)  shall  apply- 

{d)  After  such  increase  of  twenty-five  (25)  per  cent  no  rates  shall 
be  applied  on  any  traffic  moving  under  class  rates  lower  than  the 
amounts  in  cents  per  100  pounds  for  the  respective  classes  as  shown 
below  for  the  several  classifications.  Any  article,  on  which  excep- 
tions to  any  classification  provides  a  different  rating  than  as  shown 
in  the  classification  to  which  it  is  an  exception,  will  be  subject  to 
the  minimum  as  provided  below  for  the  class  provided  therefor  in  the 
classification  proper : 


287 

Official  classification. 

Classes    12  3  4  5  6 

Rates   25  21i        17  m  9  7 

Southern  classification. 

Classes 1  2  3  4  5  GABCD 

Rates 25  214         19  16  13  11       9        10       74       6^ 

Western  classificati&n. 

Classes 1  2  3  4  5ABCDE 

Rates 25  21  174  15  31        12i       94         74         64        5 

Illinois  classification. 

Classes 123456789  10 

Rates 25    21    17i   15    11    124    9     74    6i     5 

Section  2. — commodity  rates   (domestic). 
(«.)  Interstate  commodity  rates  on  the  following  articles  in  car- 
loads shall  be  increased  by  the  amounts  set  opposite  each : 

Commodities.  Increases. 

Coal— 

Wliei-e  rate  is    0  to  49  cents  per  ton__^  15  cents  per  net  ton  of  2,000  pounds. 
Where  rate  is  50  to  99  cents  per  ton__' 20  cents  per  net  ton  of  2,000  pounds. 

Where  rate  is  $1  to  $1.99  per  ton '  30  cents  per  net  ton  of  2,000  pounds. 

Where  rate  is  $2  to  $2.99  per  ton *  40  cents  per  net  ton  of  2,000  pounds. 

Where  rate  is  $3  or  higher  per  ton ^  50  cents  per  net  ton  of  2,000  pounds. 

Coke- 
Where  rate  is    0  to  49  cents  per  ton_  *  15  cents  per  net  ton  of  2,000  pounds. 
Where  rate  is  50  to  99  cents  per  ton_  ^  25  cents  per  net  ton  of  2,000  pounds. 

Where  rate  is  $1  to  $-1.99  per  ton MO  cents  per  net  ton  of  2,000  pounds. 

Where  rate  is  $2  to  $2.99  per  ton '  60  cents  per  net  ton  of  2,000  pounds. 

Where  rate  is  $3  or  higher  per  ton__.^  75  cents  per  net  ton  of  2,000  pounds. 

Ores,  iron 30  cents  per  net  ton  of  2,000  pounds  : 

except  that  no  increase  shall  be 
made  in  rates  on  ex-lalie  ore  that 
has  paid  one  increased  rail  rate 
before  reaching  lake  vessel. 
Stone,   artificial  and   natural,   building   and 
monumental,  except  carved,  lettered,  pol- 
ished, or  traced Two  (2)  cents  per  100  pounds. 

Stone,  broken,  crushed,  and  ground One  (1)  cent  per  100  pounds. 

Sand  and  gravel One  (1)  cent  per  100  pounds. 

Brick,  except  enameled  or  glazed Two  (2)  cents  per  100  pounds. 

Cement,  cement  plasters,  and  plaster Two  (2)  cents  per  100  pounds. 

Lime One  and  one-half  (14)  cents  per  100 

pounds. 


1  Wliei-e  rates  have  not  been  increased  since  June  1,  1917,  the  increase  to  be  made  now 
shall  be  determined  by  first  adding  to  the  present  rate  fifteen  (15)  cents  per  ton,  net 
or  gross  as  rated,  or  if  an  increase  of  less  than  fifteen  (15)  cents  per  ton,  net  or  gross 
as  rated,  has  been  made  since  tliat  date,  then  by  first  adding  to  the  present  rate  the 
difEerence  between  the  amount  of  that  increase  and  fifteen  (15)  cents  per  ton,  net  or 
gross  as  rated  ;  and  to  the  rates  so  constructed  the  above  increases  shall  now  be  added. 

WTiere  rates  from  producing  points  or  to  destination  have  been  based  on  fixed  differ- 
entials in  cents  per  ton,  such  differentials  to  be  maintained,  the  increase  to  be  figured  ou 
the  highest  rated  point  or  group. 


288 


Lumber  and  articles  taking  same  rates 
or  arbitraries  over  lumber  rates; 
also  other  forest  products,  rates  ou 
which  are  not  higher  than  on  Utm- 

Ifjer Twenty-five  (25)  per  cent,  but  not  ex- 
ceeding an  increase  of  five  (5) 
cents  per  100  pounds. 
Grain,  wheat Twenty -five  (25)  per  cent,  but  not  ex- 
ceeding an  increase  of  six  (6)  cents 
per  100  pounds. 

Other  grain New  wheat  rates. 

Flour  and  other  mill  products Twenty-five  (25)  per  cent,  but  not  ex- 
ceeding an  increase  of  six  (6)  cents 
per  100  pounds  and  increase  shall  be 
not  less  than  new  rates  on  wiieat. 

Q^j^tom Fifteen    (15)    cents  per  100  pounds. 

Cotton  linters ^'ew  cotton  rates. 

Live  stock Twenty-five  (25)  per  cent,  but  not  ex- 
ceeding an  increase  of  seven  (7) 
cents  per  100  pounds,  where  rates 
are  published  per  100  pounds,  or  $15 
per  standard  36-foot  cai-  where  rates 
are  published  per  car. 
Packing  -  house  products  and  fresh  Twenty -five  (25)  per  cent,  except  that 
mgats.  the   rates   from   all   Missouri   River 

points  to  Mississippi  River  territory 
and  east  thereof  shall  be  the  same  as 
the  new  rates  from  St.  Joseph,  Mo. 
Bullion,    base    (copper    or    lead),    pig     Twenty-five   (25)  per  cent,  except- 
or slab  and  other  smelter  products.     1.  That  rates  from  producing  points  in 

the  States  of  Arizona,  California, 
Idaho,  Montana,  Nevada,  New  Mex- 
ico, Oregon,  Utah,  and  Washington 
to  New  Yoi-k,  N.  Y.,  shall  be  sixteen 
dollars  and  fifty  cents  ($16.50)  per 
net  toil  with  establislied  differentials 
to  other  Atlantic  seaboard  points, 
and 
2.  Rates  from  points  in  Colorado  and 
El  Paso,  Tex.,  to  Atlantic  seaboard 
points  shall  be  increased  six  dollars 
and  fifty  cents  ($6.50)  per  net  ton. 
Separately  established  rates  used  as 
factors  in  making  through  rates  to 
tlie  Atlantic  seaboard  shall  l)e  in- 
creased in  amounts  sufficient  to  pro- 
tect the  through  rates  as  above  in- 
•  creased. 

Sugar,   including  syrup  and   molasses     Twenty-five  (25)  per  cent,  except— 
where  sugar  rates  apply  thereon.  1.  AVhere  the  Official  Classification  ap- 

plies,  5th   class  rates  as  increased 
will  apply. 


289 


2.  From  points  east  of  the  Indiana-Illi- 
nois State  line  to  points  west  of  the 
Mississippi  River,  rates  will  con- 
tinue to  be  made  on  combination  of 
local  rates  or  of  proportional  rates 
if  published,  to  and  from  the  :Missis- 
sippi  River ;  except  that  from  points 
on  the  Atlantic  seaboard  to  the 
Missouri  River,  Kansas  City,  Mo., 
to  Sioux  City,  Iowa,  inclusive,  es- 
tablished differentials  over  the  in- 
creased rates  from  New  Orleans, 
La.,  shall  be  maintained. 

3.  From  points  in  the  States  south  of 
the  Ohio  River  and  east  of  the  Mis- 
sissippi River,  also  from  points  in 
the  States  of  Louisiana  and  Texas, 
rates  shall  be  increased  :  To  Chicago, 
111.,  twenty-two  (22)  cents  per  100 
pounds ;  to  St.  Louis,  Mo.,  twenty- 
seven  and  one-half  (27^)  cents  per 
100  pounds ;  to  other  points  west  of 
the  Indiana-Illinois  State  line  and 
west  of  the  Mississippi  River,  ex- 
cept points  in  Arkansas,  Louisiana, 
and  Texas,  twenty-tvv'o  (22)  cents 
per  100  pounds ;  to  points  on  and 
north  of  the  Ohio  River  and  east  of 
the  Indiana-IUinois  State  line  rates 
shall  be  increased  to  maintain  the 
former  established  relation  to  the 
rates  to  such  points  from  producing 
points  on  Atlantic  seaboard. 

4.  From  producing  points  in  Colorado, 
Wyoming,  Montana.  Kansas,  and  Ne- 
braska to  Missouri  River  territory 
and  points  in  Arkansas,  Oklahoma, 
Louisiana,  and  Texas  and  points 
east  thereof  twenty-two  (22)  cents 
per  100  pounds. 

5.  From  points  in  Idaho  and  Utah  to 
points  named  in  paragraph  (3) 
rates  shall  be  fifteen  (15)  cents 
above  the  rates  from  eastern  Colo- 
rado. 

6.  From  points  in  California  to  points 
taking  Missouri  River  rates  and 
points  related  thereto  under  the 
Commission's  Fourth  Section  Orders, 
and  to  points  east  of  the  Missouri 
River,  twenty-two  (22)  cents  per 
100  pounds. 


105889°— 19 19 


290 

(5)  Interstate  commodity  rates  not  included  in  the  foregoing  list 
shall  be  increased  twenty-five  (25)  per  cent. 

((?)  Intrastate  commodity  rates  shall  be  increased  as  shown  in 
paragraphs  (a)  and  (5)  of  this  section  where  there  are  no  interstate 
commodity  rates  published  on  substantially  the  same  commodities 
between  the  same  points,  and  shall  be  subject  to  the  minimum 
weights  applicable  on  interstate  traffic  in  the  same  territory. 

(d)  Intrastate  commodity  rates  shall  be  canceled  where  inter- 
state commodity  rates  are  published  on  substantially  the  same  com- 
modities between  the  same  points,  and  the  interstate  rates  as  increased 
by  paragraphs  (a)  and  {h)  of  this  section  shall  apply. 

(e)  In  applying  the  increases  prescribed  in  this  section  the  in- 
creased class  rates  applicable  to  like  commodity  descriptions  and 
minimum  weights  between  the  same  points  are  not  to  be  exceeded, 
except  that  the  increases  in  rates  on  sugar  in  carloads  shall  be  made 
as  expressly  provided  in  paragraph  (a)  of  this  section. 

Section  3. — export  and  import  rates. 

All  export  and  import  rates  shall  be  canceled  and  domestic  rates 
applied   to   and    from   the  ports. 

Section  4. — filing  intrastate  tariffs  with  interstai-e  commerce 

COMMISSION. 

(a)  All  intrastate  rates  and  all  rates  for  transportation  by  water, 
which  are  to  be  increased  under  this  order,  if  not  now  on  file,  except 
rates  canceled  under  paragraph  (c)  of  section  1  and  paragraph  (d) 
of  section  2,  shall  be  immediately  filed  with  the  Interstate  Commerce 
Commission. 

(6)  All  items  which  are  confined  in  their  application  to  intra- 
state traffic,  but  are  now  carried  in  tariffs  on  file  with  the  Interstate 
Commerce  Commission,  if  not  canceled  under  paragraph  (c)  of  sec- 
tion 1  and  paragraph  (d)  of  section  2,  shall  be  made  applicable  to 
all  traffic. 

Section  5. — minimum  charges. 

(a)  The  minimum  charge  on  less  than  carload  shipments  shall  be 
as  provided  in  the  classification  governing,  but  in  no  case  shall  the 
cliarge  on  a  single  shipment  be  less  than  50  cents. 

(b)  The  minimum  charge  for  carload  shipments  shall  be  $15  por 
car.    Does  not  apply  to  charges  for  switching  service. 


291 
Section  6. — ^disposition  of  fractions. 

In  applying  rates,  fractions  shall  be  disposed  of  as  follows : 

{a)  Kates  in  cents  or  in  dollars  and  cents  per  100  pounds  or  per 
package:  Fractions  of  less  than  one- fourth  or  0.25  to  be  omitted; 
fractions  of  one-fourth  or  0.25,  or  greater,  but  less  than  three-fourths 
or  0.75  to  be  shown  as  one-half;  fractions  of  three-fourths  or  0.75, 
or  greater,  to  be  increased  to  the  next  whole  figure. 

(6)  Eates  per  ton:  Amounts  of  less  than  5  cents  to  be  omitted; 
amounts  of  5  cents  or  greater,  but  less  than  10  cents,  to  be  increased 
to  10  cents. 

(c)  Rates  per  car:  Amounts  of  less  than  25  cents  to  be  omitted; 
amounts  of  25  cents  or  greater,  but  less  than  75  cents,  to  be  shown 
as  50  cents;  amounts  of  75  cents  or  gi'eater,  but  less  than  $1,  to  be 
increased  to  $1. 

Section  7. — observance  of  differentials. 

In  establishing  the  freight  rates  herein  ordered,  while  established 
rate  groupings  and  fixed  differentials  are  not  required  to  be  used, 
their  use  is  desirable,  if  found  practicable,  even  though  certain  rates 
may  result  which  are  lower  or  higher  than  would  otherwise  obtain. 

Passenger  Fares  and  Baggage  Charges. 

SECTION    8. 

This  order  shall  apply  to  all  the  passenger  fares,  both  interstate 
and  intrastate,  of  the  railroads  under  Federal  control.  No  existing 
fare  equal  to  or  in  excess  of  three  (3)  cents  per  mile  shall  be  reduced. 
All  fares  now  constructed  on  a  lower  basis  than  three  (3)  cents  per 
mile  shall  be  advanced  to  the  basis  of  three  (3)  cents  per  mile.  All 
fares  which  are  on  a  lower  basis  than  the  said  existing  or  advanced 
fares,  as  the  case  may  be,  such  as  mileage  or  excursion  tickets,  shall 
be  discontinued.  These  requirements  are  subject  to  the  following- 
exceptions  : 

{a)  The  provisions  of  sections  1  and  22  of  the  act  to  regulate 
commerce,  which  authorize  free  or  reduced  fares  or  transportation, 
may  be  observed,  except — 

First.  That  no  mileage  ticket  shall  be  issued  at  a  rate  that  will 
afford  a  lower  fare  than  the  regular  one-way  tariff  fare,  and  except — 

Second.  That  excursion  tickets  may  be  issued  only  to  the  extent 
and  on  the  terms  set  forth  in  paragraphs  {h)  and  (<?)  below: 

(5)  Eound-trip  tourist  fares  shall  be  established  on  a  just  and 
reasonable  basis  bearing  proper  relation  to  the  one-way  fares  author- 


292 

izecl  by   this  order,  and  tariffs  governing  same  shall  be  filed   as 
promptly  as  possible  with  the  Interstate  Commerce  Commission. 

((?)  For  the  national  encampment  of  the  Grand  Army  of  the 
Eepublic  and  auxiliarj^  and  allied  organizations  at  Portland,  Oreg., 
in  1918,  and  for  the  United  Confederate  Veterans  Eeunion,  auxiliary 
and  allied  organizations  at  Tulsa,  Okla.,  in  1918,  a  rate  of  one  cent 
per  mile  in  each  direction  via  direct  routes  shall  be  authorized  and 
confined  by  certificate  of  identification  to  the  membership  of  these 
organizations  and  members  of  their  immediate  families.  For  the 
various  State  meetings  of  these  organizations  held  during  the  year 
1918,  fares  shall  be  authorized  under  like  conditions  on  basis  of 
two  (2)  cents  per  mile  in  each  direction  and  confined  to  limits  of 
the  State  in  which  the  meeting  is  hekl. 

(d)  WTiere  public  convenience  will  be  served  thereby,  subject  to 
the  approval  of  the  Director  General,  fares  determined  by  the  short 
line  may  be  applied  over  longer  practicable  routes. 

(e)  Officers,  enlisted  men,  and  nurses  of  the  United  States  Army, 
Navy,  and  Marine  Corps  when  traveling  in  uniform  at  own  expense, 
shall  be  granted  the  privilege  of  purchasing  passage  tickets  at  one- 
third  ii)  the  regular  one-way  fare,  via  route  of  ticket,  applicable  in 
coach,  parlor,  or  sleeping  car,  as  the  case  may  be,  when  on  furlough 
or  official  leave  of  absence,  except  that  this  reduced  fare  shall  not 
be  granted  on  short-term  passes  from  camps  or  when  on  liberty 
from  ships  or  stations  to  near-by  cities. 

Applicants  for  such  tickets  shall  be  required  to  submit  for  inspec- 
tion of  ticket  agent  military  furlough  or  other  official  form  of  leave 
of  absence  and  to  surrender  to  ticket  agent  a  furlough  fare  certificate 
signed  by  a  commanding  officer. 

(/)  Children  under  5  years  of  age,  when  accompanied  by  parent 
or  guardian,  shall  be  carried  free;  children  5  yeai-s  and  under  12 
years  of  age  shall  be  charged  half  fare. 

SECTION    9. 

Commutation  fares  shall  be  advanced  ten  (10)  per  cent.  Com- 
mutation fares  shall  be  construed  to  include  all  forms  of  transporta- 
tion designed  for  suburban  travel  and  for  the  use  of  those  who  have 
daily  or  frequent  occasion  to  travel  between  their  homes  and  places 
of  employment  or  educational  institutions. 

SECTIOX    10. 

Passengers  traveling  in  standard  sleeping  cars  and  parlor  cars 
shall  be  required  to  pay  an  additional  passage  charge  of  sixteen  and 
two-thirds  (16§)  per  cent  of  the  normal  one-Avay  fare,  and  passen- 
gers traveling  in  tourist  sleeping  cars  an  additional  passage  charge 


293 

of  eight  and  one-third  (8J)  per  cent  of  the  nonnal  one-way  fare. 
The  foregoing  cliarges  are  in  addition  to  those  required  for  the  oc- 
cupancy of  berths  in  sleeping  cars  or  seats  in  parlor  cai^. 

SECTION    ]1. 

The  following  minimum  number  of  tickets  of  the  class  good  for 
passage  in  sleeping  or  parlor  cai-s  shall  be  required  for  occupancy  of 
dravring  rooms,  compartments  or  sections  in  parlor  or  sleeping  cars: 

Two  adult  tickets  for  a  draAving  room  in  a  sleeping  car. 

Two  adult  tickets  for  a  compartment. 

One  and  one-half  adult  tickets  for  a  section. 

FiA'e  adult  tickets  for  exclusive  occupancy  of  drawing  room  in  a 
parlor  car. 

SECTIOX   12. 

Passenger  fares  or  changes  for  accommodation  and  transportation 
of  passengers  entirely  by  water,  or  partly  by  water  and  partly  by 
rail,  shall  be  increased  proportionately  with  fares  and  charges  for 
the  transportation  of  passengers  via  rail. 

SECTIOX  13. 

The  basis  for  computing  charges  for  excess  baggage  transported 
under  lawfully  effective  tariffs  shall  be  sixteen  and  two-thirds  (16f ) 
]>er  cent  of  the  normal  one-way  passenger  fare,  with  minimum  of 
fifteen  (15)  cents  per  100  pounds  and  minimum  collection  of  twenty- 
five  (25)  cents  per  shipment. 

SECTIOX  14. 

Tickets  purchased  prior  to  June  10.  1918.  will  not  be  honored  for 
passage  on  and  after  that  date,  except — 

(a)  Passengers  en  route  on  Jvme  10.  1918,  on  one-way  tickets  will 
be  carried  to  destination  by  continuous  passage  without  additional 
charge. 

(h)  Eound-trip  tickets,  portions  of  which  have  been  used  prior  to 
June  10,  1918,  or  held  by  passengers  en  route  on  June  10,  1918,  shall 
be  honored  in  accordance  with  original  tariff  conditions  under  which 
sold  without  additional  payment  except  that  they  shall  be  subject  to 
the  same  requirements  as  one-way  tickets  in  respect  of  additional 
payment  for  passage  in  sleeping  or  parlor  cars  as  prescribed  in  sec- 
tion 10. 

Tickets  made  invalid  for  passage  by  this  order  will  be  redeemed 
from  original  purchasers  as  follows: 

Unused  tickets  will  be  redeemed  at  amount  paid  therefor. 

Partially  used  one-way  tickets  will  be  redeemed  by  charging  tariff 
fare  at  time  of  journey  for  portion  used  and  refunding  difference 
between  such  amount  and  fare  at  which  sold. 


294 

In  redemption  of  mileage,  scrip,  or  credential  forms  the  purchaser 
sliall  be  given  the  benefit  for  the  distance  traveled  of  a  net  basis 
proportionate  to  that  which  would  have  applied  had  the  entire  book 
been  used  according  to  its  contract,  ^ 

SECTION    15. 

All  passenger  fares  lower  than  those  hereinbefore  prescribed,  such 
as  mileage,  party,  second-class,  immigrant,  convention,  excursion, 
and  tourist  fares,  shall  be  discontinued  until  further  notice,  except 
that  tourist  fares  shall  be  reestablished  as  prescribed  in  section  8, 
paragraph  (h)  hereof. 

SECTION    10. 

Tariff  provisions  intended  to  assure  the  long  haul  to  carriers,  and 
which  prevent  the  free  interchange  of  traffic,  shall  be  eliminated. 

SECTION    17. 

Stop-overs  on  one-way  tickets,  side  trips  at  free  or  reduced  fares, 
discounts  by  use  of  excess-baggage  permits  or  excess  money  coupon 
books,  and  the  sale  of  one-way  tickets  bearing  limit  in  e::cess  of  time 
necessary  to  make  trip  by  continuous  passage  shall  be  discontinued. 

SECTION    IS. 

Optional  routes  may  be  used  only  when  specified  in  tariffs. 

SECTION    10. 

In  publishing  fares  and  charges  under  this  order,  tariffs  may  be 
used  which  increase  the  present  fares  by  fixed  percentage  to  bring 
them  to  the  bases  authorized  herein,  even  though  the  actual  fares  so 
constructed  may  be  fractionally  more  or  less  than  three  (3)  cents  per 
mile. 

General. 

SECTION    20. 

Where  the  Interstate  Commerce  Commission  prior  to  the  date 
hereof  has  authorized  or  prescribed  rates,  fares,  and  charges,  which 
have  not  been  published  at  the  date  of  this  order,  the  rates,  fares,  or 
charges  initially  established  hereunder  by  applying  the  increases 
herein  prescribed  to  the  existing  or  published  rates,  fares,  or  charges 
may  be  subsequently  revised  by  applying  the  increases  prescribed 
herein  to  the  rates,  fares,  and  charges  so  authorized  or  prescribed  by 
the  Interstate  Commerce  Commission. 


295 

SECTIOX    21. 

All  schedules,  viz,  tariffs  and  supplements,  published  under  the 
provisions  of  this  order  shall  bear  on  the  title-page  the  following,  in 
bold-face  type: 

"  The  rates  ^  made  effective  by  this  schedule  are  initiated  by  the 
President  of  the  United  States  through  the  Director  General,  United 
States  Eailroad  Administration,  and  apply  to  both  interstate  and 
intrastate  traffic. 

"  This  schedule  is  published  and  filed  on  one  day's  notice  with  the 
Interstate  Commerce  Commission  under  General  Order  No.  28  of  the 
Director  General,  United  States  Eailroad  Administration,  dated 
May  25,  1918." 


Supplement  No.  1  to  General  Order  No.  28. 

Washington,  D.  C,  JuTie  12,  1918. 

It  is  ordered  that  General  Order  No.  28,  be,  and  the  same  is  hereby, 
supplemented  by  amending  the  terms  and  provisions  of  the  exhibit 
attached  thereto  as  follows: 

Paragraphs  (&)  and  {c)  of  section  1,  paragraphs  {c)  and  {d)  of 
section  2,  and  paragraph  (&)  of  section  4  are  canceled. 

Paragraph  {a)  of  section  1  is  amended  to  read  as  follows: 

(a)  All  class  rates,  both  interstate  and  intrastate,  shall  be  increased  twenty- 
five  (25)  per  cent,  except  that  between  points  in  the  State  of  Oklahoma  the 
class  rates  for  single  and  joint  lines  prescribed  by  the  Interstate  Commerce' 
Commission  for  use  between  Shreveport,  La.,  and  points  in  Texas  common- 
point  territory,  as  shown  on  pages  345  and  346  of  the  fbrty-eighth  volume  of 
Interstate  Commerce  Commission  reports,  plus  twenty-five  (25)  per  cent,  shall 
be  applied. 

Paragraph  {d)  of  section  1  is  amended  to  read  as  follows: 

id)  After  such  increase  no  rates  shall  be  applied  on  any  traffic  moving  under 
class  rates  lower  than  the  amounts  .in  cents  per  100  pounds  for  the  respective 
classes  as  sho\NTi  below  for  the  several  classifications.  The  minimum  rate  on 
any  article  shall  be  the  rate  for  the  class  at  which  that  article  is  rated  in  the 
classification  shown  below  applying  in  the  territory  where  the  shipment  moves. 

Official  classification. 

Classes 12  3  4  5  6 

liates 25  21*  17  12i  9  7 

South ern  classifica  tion. 

Classes l2345ejABCD 

Rates 25         21i       19         10         13         11  9         10         H       6* 


^  On  passenger   tariffs  use  word  "fares."      On  baggage  tariffs   use  word   "charges. 


B 

G 

D 

E 

9 

T* 

6* 

5 

7 

S 

9 

10 

9 

7i 

6A 

5 

296 

Western  chisslflcaUon. 

Classes 1  2  3  4  5  A 

Rates 25         21         171       3")         11         12} 

Illinois  classification. 

Classes 12  3  4  5  6 

Rates 25        21        17i       15        11        12J 

Paragraph  (a)  of  section  2  is  amended  to  read  as  follows: 
(a)   Commodity  rates,  both  interstate  aud  intrastate,  on  the  following  articles, 
applicable  on  carloads,  except  as  otherwise  provided,  shall  be  increased  by  the 
amounts  set  opposite  each : 

Commodities.  Increases 

Coal : 

Where  rate  is    0  to  49  cents  per  ton 15  cents  per  net  ton  of  2,000  ix)unds. 

Where  rate  is  50  to  99  cents  per  ton 20  cents  per  net  ton  of  2,000  pounds. 

Where  rate  is  $1  to  $1.99  per  ton 30  cents  per  net  ton  of  2,000  pounds. 

AVhere  rate  is  $2  to  $2.99  per  ton 40  cents  per  net  ton  of  2,000  pounds. 

Where  rate  is  $8  or  higher  per  ton 50  cents  per  net  ton  of  2,000  pounds. 

Where  rates  have  not  been  increased  since  June  1,  1917,  the  increase  to  be 
made  now  shall  be  determined  by  first  adding  to  the  present  rate  fifteen  (15) 
cents  per  ton,  net  or  gross  as  rated,  or  if  an  increase  of  less  than  fifteen  (15) 
cents  per  ton,  net  or  gross  as  rated,  has  been  made  since  that  date,  then  by 
first  adding  to  the  present  rate  the  difference  between  the  amount  of  that  in- 
crease and  fifteen  (15)  cents  per  ton,  net  or  gross  as  rated;  and  to  the  rates 
so  constructed  the  above  increases  shall  now  be  added. 

Whei'e  rates  from  producing  points  or  to  destinations  have  been  based  on 
fixed  differentials  in  cents  per  ton,  such  differentials  to  be  maintained,  the 
increase  to  be  figured  on  the  highest  rated  point  or  group. 

Commodities.  Increases. 

Coke : 

Where  rate  is    0  to  49  cents  per  ton 15  cents  per  net  ton  of  2,000  pounds. 

Where  rate  Is  50  to  99  cents  per  ton 25  cents  per  net  ton  of  2,000  pounds. 

Where  rate  is  $1  to  $1.99  per  net  ton__40  cents  per  net  ton  of  2,000  pounds. 
AVhere  rate  is  $2  to  $2.99  per  net  ton__60  cents  per  net  ton  of  2,000  pounds. 

Where  rate  is  $3  or  higher  per  ton 75  cents  per  net  ton  of  2,000  pounds. 

ANhere  rates  have  not  been  increased  since  June  1,  1917,  the  increase  to  be 
made  now  shall  be  determined  by  first  adding  to  the  present  rate  fifteen  (15) 
cents  per  ton,  net  or  gross  as  rated,  or  if  an  increase  of  less  than  fifteen  (15) 
cents  per  ton,  net  or  gross  as  rated,  has  been  made  since  that  date,  then  by 
first  adding  to  the  present  rate  the  difference  between  the  amount  of  that  in- 
crease and  fifteen  (15)  cents  per  ton.  net  or  gi-oss  as  rated;  and  to  the  rates 
so  constructed  the  above  increases  shall  now  be  added. 

Whex-e  rates  from  producing  points  or  to  destinations  have  been  based  on 
fixed  differentials  in  cents  per  ton,  such  differentials  to  be  maintained,  the 
increase  to  be  figured  on  the  highest  rated  point  or  group. 

Commodities.  Increases. 

Ores,  iron 30  cents  per  net  ton  of  2,000  pounds; 

except    that    no    increase    shall    be 
made  in   the   rates  on   ex-lake  ore 
that  has  paid  one  increased  rail  rate 
before  reaching  lak(.'   vessel. 
Stone,  artificial  and  natural,  building 
and  monumental,  except  carved,  let- 
tered, polished,  or  traced Two   (2)  <en1s  ]i»'r  l()!i  jiounds. 


297 


Commodities.  Increases. 

Stone,  broken,  cruslied,  aud  gronud one  (1)  cent  per  100  pounds. 

Sand  and  gravel - '^ue  (1)  cent  per  100  pounds. 

Brick,  except  enameled  or  glazed Two  (2)  cents  per  100  pounds. 

Cement,  cement  plasters,  and  plaster Two  (2)  cents  per  100  pounds. 

Lime One  and  one-half   (1*)    cents  per  100 

pounds. 

Lumber  and  articles  taking  same  rates      Twenty-five  (25)  per  cent,  but  not  ex- 
or    arbitraries    over    lumber    rates;  ceeding  an  increase  of  five  (5)  cents 

also  other  forest  products,  rates  on  per  100  pounds, 

which  are  not  higher  than  on  lumber. 

Grain,  wheat Twenty-five  (25)  per  cent,  but  not  ex- 
ceeding an  increase  of  six  (6)  cents 
per  100  pounds. 

Other  grain Xew  wheat  rates. 

Flour  and  other  mill  products Twenty-five  (25)  per  cent,  but  not  ex- 
ceeding an  increase  of  six  (6)  cents 
per  100  pounds,  and  increased  rates 
shall  not  be  less  than  new  rates  on 
wheat. 

Cotton,  any  quantity Fifteen  (15)  cents  per  100  pounds. 

Cotton  linters Xew  cotton  rates. 

Live  stock Twenty-five  (25)  per  cent,  but  not  ex- 
ceeding an  increase  of  seven  (7) 
cents  per  100  pounds,  where  rates 
are  published  per  100  pounds,  or 
i^W  per  standard  36-foot  car  where 
rates  are  published  per  car. 

Packing  -  house    products     aud     fresh     Twenty-five  (25)  per  cent,  except  that 
meats.  the  rates   from   all   Jlissouri   River 

points  to  Mississippi  River  territory 
and  east  thereof  shall  be  the  same 
as  the  new  rates  from  St.  Joseph, 
Mo. 

Bullion,  base   (copper  or  lead),  pig  or     Tvrenty-five  (25)  per  cent,  except 

slab,  and  other  smelter  products.  ^    ^j^^'^  ^,^^^^  ^^,^^  producing  points  in 

the  States  of  Arizona,  California, 
Idaho.  Montana,  Nevada,  New  Mex- 
ico, Oregon,  Utah,  and  Washington 
to  New  York,  N.  Y.,  shall  be  sixteen 
dollars  and  fifty  cents  ($16.50)  per 
net  ton  \Aith  established  differentials 
to  other  Atlantic  seaboard  points; 
and 
2.  Rates  from  points  in  Colorado  and 
El  Paso,  Tex.,  to  Atlantic  seaboard 
points  shall  be  increased  six  dollars 
and  fifty  cents  ($6.50)  per  net  ton. 
Separately  established  rates  used  as 
factors  in  making  through  rates  to 
the  Atlantic  seaboard  shall  be  in- 
creased in  amounts  sufficient  to  pro- 
tect the  through  rates  as  above  in- 
creased. 


298 


Commodities. 
Sugar,   including  syrup  and  molasses, 
where  sugar  rates  apply  thereon. 


Increases. 

Twenty-five  (25)  per  cent,  except — 

1.  Where  the  Official  Classification  ap- 
plies, 5th  class  rates  as  increased 
will  apply. 

2.  From  points  east  of  the  Indiana- 
Illinois  State  line  to  points  west  of 
the  Mississippi  River  rates  will  con- 
tinue to  be  made  on  combination  of 
local  rates  or  of  pi-oportional  rates 
if  published  to  and  from  the  Missis- 
sippi River ;  except  that  from  points 
on  the  Atlantic  seaboard  to  the  Mis- 
souri River,  Kansas  City,  Mo.,  to 
Sioux  City,  Iowa,  inclusive,  estab- 
lished differentials  over  the  increased 
rates  fi'om  New  Orleans,  La.,  shall 
be  maintained. 

3.  From  points  in  the  States  sotith  of 
the  Ohio  River  and  east  of  the  Mis- 
sissippi River,  also  from  points  in 
the  States  of  Louisiana  and  Texas 
rates  shall  be  increased  by  the  fol- 
lowing amounts  less  the  amount  of 
any  advance  made  in  such  rates 
since  June  1st,  1917 ;  to  Chicago,  111., 
twenty -two  (22)  cents  per  100 
pounds;  to  St.  Louis,  Mo.,  twenty- 
seven  and  one-half  (27J)  cents  per 
100  pounds ;  to  other  points  west  of 
the  Indiana-Illinois  State  line  and 
west  of  the  Mississippi  River,  ex- 
cept points  in  Arkansas,  Louisiana, 
and  Texas,  twenty-two  (22)  cents 
per  100  pounds;  to  points  on  and 
north  of  the  Ohio  River  and  east  of 
the  Indiana-Illinois  State  line  rates 
shall  be  increased  to  maintain  the 
former  established  relation  to  the 
rates  from  the  same  points  of  origin 
to  Chicago,  111.,  and  St.  Louis,  Mo. 

4.  From  producing  points  in  Colorado, 
W.voming,  Montann,  Kansas,  and 
Nebraska  to  Missouri  River  terri- 
tory and  points  in  Arkansas,  Okla- 
homa, Louisiana,  and  Texas  and 
points  east  thereof  twenty-two  (22) 
cents  per  10  pounds. 

5.  From  points  in  Idaho  and  Utah  to 
l)()ints  named  in  paragraph  (4)  rates 
shall  be  fifteen  (15)  cents  above  the 
rates  from  eastern  Colorado. 


299  • 

Commodities.  Increases. 

6.  From  points  iu  California  and  Ore- 
gon to  points  taking  Missouri  River 
rates  and  points  i*elated  thereto 
under  tlie  Commission's  Fourtli  Sec- 
tion Orders,  and  to  points  east  of 
the  Missouri  River,  twenty-two  (22) 
cents  per  100  pounds. 

Paragraph  (&)  of  section  2  is  amended  to  read  as  follows: 

(b)  Commoditj'  rates,  both  interstate  and  intrastate,  not  included  in  the 
foregoing  list  shall  be  increased  twenty-five  (25)  per  cent. 

Paragraph  (a)  of  section  4  is  amended  to  read  as  follows : 

(a)  All  intrastate  rates  and  all  rates  for  transportation  by  water,  which  are 
to  be  increased  under  this  order,  if  not  now  on  file,  shall  be  immediately  filed 
with  the  Interstate  Commerce  Commission.  Such  intrastate  rates  shall  not  be 
applied  on  interstate  shipments  and  the  schedules  containing  said  rates  shall  be 
so  restricted. 

Paragraph  (&)  of  section  5  is  amended  to  read  as  follows: 

(&)  The  minimum  charge  for  a  line  haul  of  a  carload  shipment  shall  be 
fifteen  dollars,  except  that  on  brick,  cement,  coal,  coke,  logs,  ore,  sand,  and 
gravel,  and  stone  (broken,  crushed,  and  ground)  the  existing  rates  as  increased 
under  section  2  of  this  order  shall  apply. 

Section  20  is  amended  to  read  as  follows : 

The  rates,  fares,  and  charges  to  be  increased  under  this  order  are  those  exist- 
ing on  May  25,  1918,  including  changes  theretofore  published  but  not  then  effec- 
tive and  not  under  suspension,  except  where  the  Inter.state  Commerce  Commis- 
sion prior  to  May  25,  1918,  authorized  or  prescribed  rates,  fares,  and  charges 
which  shall  have  been  published  after  May  25,  1918,  and  previous  to  June  15, 
1918,  the  increases  herein  prescribed  shall  apply  thereto.  Such  authorized  or 
prescribed  rates,  fares,  and  charges  not  so  published  shall  be  subsequently  re- 
vised when  published  by  applying  the  increases  prescribed  herein. 

Section  21  is  amended  to  read  as  follows : 

(a)  All  schedules,  viz,  tariffs  and  supplements  covering  passenger  fares  and 
baggage  charges  published  under  the  provisions  of  this  order  shall  bear  on  the 
title-page  the  following  in  bold-face  type : 

"  The  fares  ^  made  effective  by  this  schedule  are  initiated  by  the  President  of 
the  United  States  through  the  Director  General,  United  States  Railroad  Ad- 
ministration, and  apply  to  both  interstate  and  intrastate  traffic. 

"  This  schedule  is  published  and  filed  on  one  day's  notice  with  the  Interstate 
Commerce  Commission  under  General  Order  No.  28  of  the  Director  General, 
United  States  Railroad  Administration,  dated  May  25,  1918." 

(6)  All  schedules,  viz,  tariffs  and  supplements,  published  to  cover  freight 
rates  under  the  provisions  of  this  order  shall  bear  on  the  title-page  one  of  the 
legends  shown  below  in  bold-face  type : 

If  all  rates  therein  are  to  be  restricted  to  apply  on  intrastate  traffic  only,  use 
the  following : 


1  On  baggage  tariffs   use  word   "  dm  rgcs. 


•  300 

"  The  rates  made  effective  by  this  schedule  are  initiated  by  the  President  of 
the  United  States  through  the  Director  General,  United  States  Railroad  Admin- 
istration, and  apply  to  interstate  traffic  only. 

*'  This  schedule  is  published  and  filed  on  one  day's  notice  AAith  the  Interstate 
Commerce  Commission  under  General  Order  No.  28  of  the  Director  General, 
United  States  Railroad  Administi'ation,  dated  May  25,  1918,  and  amended  June 
12,  1918." 

If  all  rates  therein  are  to  apply  on  interstate  traffic  only,  use  the  following : 

"  The  rates  made  effective  by  this  schedule  are  initiated  by  the  President  of 
the  United  States  through  the  Director  Genei-al,  United  States  Railroad  Admin- 
istration, and  apply  to  interstate  traffic  only. 

"  This  schedule  is  published  and  filed  on  one  day's  notice  with  the  Intei-state 
Commerce  Commission  under  General  Order  No.  28  of  the  Director  General, 
United  States  Railroad  Administration,  dated  May  25,  1918,  and  amended  June 
12,  1918." 

If  all  rates  therein  are  to  apply  on  both  intrastate  and  interstate  traffic,  use 
the  following : 

"The  rates  made  effective  by  this  schedule  are  initiated  by  the  President 
of  the  United  States  through  the  Director  General,  United  States  Railroad 
Administration,  and  apply  to  both  interstate  and  intrastate  traffic. 

"  This  schedule  is  published  and  filed  on  one  day's  notice  with  the  Inter- 
state Commerce  Commission  under  General  Order  No.  28  of  the  Director 
General,  United  States  Railroad  Administration,  dated  May  25,  1918,  and 
amended  June  12,  1918." 

If  some  of  the  rates  therein  are  to  apply  to  interstate  traffic  and  others  to 
intrastate  traffic,  use  the  following : 

"  The  rates  made  effective  by  this  schedule  are  initiated  by  the  President  of 
the  United  States  through  the  Director  General,  United  States  Railroad  Admin- 
istration, and  apply  to  interstate  or  intrastate  traffic,  as  provided  hei'ein. 

"  This  schedule  is  published  and  filed  on  one  day's  notice  with  the  Interstate 
Commerce  Commission  under  General  Order  No.  28  of  the  Director  General, 
United  States  Railroad  Administration,  dated  May  25,  1918,  and  amended  June 
12,  1918," 

Given  under  mj-  hand  this  the  12th  day  of  Jnno.  1018. 

W.  G.  McAdoo, 
Director  General  of  Railrooch. 


General  Order  Xo.  29. 

Washington,  May  31,  WIS. 
Whereas  certain  of  the  raih-oads  now  under  control  of  the  Director 
General  have  in  existence  at  this  time  agreements  with  the  Interna- 
tional Association  of  Machinists,  International  Brotherhood  of  Boil- 
ermakers, Iron  Ship  Builders  and  Helpers  of  America.  International 
Brotherhod  of  Blacksmiths  and  Helpers,  Brotherhood  Kailway  Car- 
men of  America,  Amalgamated  Sheet  Metal  Workers'  International 
Alliance,  and  International  Brotherhood  of  Electrical  Workers  which 
provide  for  basis  of  compensation  and  regulations  of  employment; 
and 


301 

Whereas  in  existing  circumstances  it  is  the  patriotic  duty  of  both 
officers  and  employees  of  the  raihoads  under  Federal  control,  espe- 
cially during  the  present  war,  promptly  and  equitably  to  adjust  any 
controversies  which  may  arise,  thereby  eliminating  misunderstand- 
ings which  tend  to  lessen  the  efficiency  of  the  service : 

It  Is  h&reb])  ordered.  That  the  basis  arrived  at  in  the  annexed 
understanding  between  Messrs.  A.  H.  Smith,  C.  H.  Markham,  and 
E.  H.  Aishton,  regional  directors,  representing  the  railroads  in  the 
eastern,  southern,  and  Avestern  territories,  which  now  have,  or  may 
hereafter  have  such  schedules  or  agreements  with  the  chief  executive 
officers  of  the  International  As,sociation  of  Machinists,  International 
Brotherhood  of  Boilermakers,  Iron  Ship  Builders  and  Helpers  of 
America.  International  Brotherhood  of  Blacksmiths  and  Helpers, 
Brotherhood  Railway  Carmen  of  America,  Almagamated  Sheet 
Metal  "Workers'  International  Alliance,  and  International  Brother- 
hood of  Electrical  Workers  be,  and  the  same  is  hereby,  adopted  and 
put  into  effect  as  of  May  31,  1918. 

W.  G.  McAdoo, 
Director  General  of  RailroaiU. 


memorandum  of  an  understanding  between  MESSRS.  A.  H.  SMITH, 
C.  H.  MARKHAM,  AND  R.  H.  AISHTON,  REGIONAL  DIRECTORS,  REPRESENT- 
ING THE  RAILROADS  IN  THEIR  RESPECTIVE  REGIONS,  AND  MR.  A.  O. 
WHARTON,  PRESIDENT  RAILWAY  EMPLOYEES  DEPARTMENT;  MR.  J.  F. 
ANDERSON,  ACTING  PRESIDENT  INTERNATIONAL  ASSOCIATION  OF  MA- 
CHINISTS: MR.  LOUIS  WJ:YAND,  ACTING  PRESIDENT  INTERNATIONAL 
BROTHERHOOD  OF  BOILER  MAKERS,  IRON  SHIP  BUILDERS  AND  HELPERS 
OF  AMERICA  ;  MR.  G.  C.  VAN  DORNES,  ACTING  PRESIDENT  INTERNATIONAL 
BROTHERHOOD  OF  BLACKSMITHS  AND  HELPERS  ;  MR.  F.  H.  KNIGHT,  ACT- 
ING PRESIDENT  BROTHERHOOD  OF  RAILWAY  CARMEN  OF  AMERICA*,  MR. 
OTTO  E.  HOARD,  ACTING  PRESIDENT  AMALGAMATED  SHEET  METAL 
workers'  international  alliance;  MR.  FRANK  J.  m'nULTY,  PRESI- 
DENT INTERNATIONAL   BROTHERHOOD   OF  ELECTRICAL   WORKERS. 

It  is  understood  that  all  controversies  growing  out  of  the  inter- 
pretation or  application  of  the  provisions  of  the  wage  schedules  or 
agreements  which  are  not  promptly  adjusted  by  the  officials  and  the 
employees  on  any  one  of  the  railroads  operated  by  the  Government 
shall  be  disposed  of  in  the  following  manner: 

1.  There  shall  be  at  once  created  a  commission,  to  be  known  as 
Railway  Board  of  Adjustment  No.  2,  to  consist  of  12  members,  6 
to  be  selected  by  the  said  regional  directors  and  compensated  by  the 
railroads,  and  one  each  by  the  chief  executive  officer  of  each  of  the 
six  organizations  of  employees  hereinbefore  named  and  compensated 
by  such  organizations. 


302 

2.  This  Board  of  Adjustment  Xo.  2  shall  meet  in  the  city  of 
Washington  within  10  days  after  the  selection  of  its  members  and 
elect  a  chairman  and  vice  chairman,  who  shall  be  members  of  the 
board.  The  chairman  or  vice  chairman  will  preside  at  meetings  of 
the  board,  and  both  will  be  required  to  vote  upon  the  adoption  of  all 
decisions  of  the  board. 

3.  The  board  shall  meet  regularly  at  stated  times  each  month  and 
continue  in  session  until  all  matters  before  it  are  considered. 

4.  Unless  otherwise  mutually  agreed,  all  meetings  of  the  board 
shall  be  held  in  the  city  of  Washington:  Provided^  That  the  board 
shall  have  authority  to  empower  two  or  more  of  its  members  to 
conduct  hearings  and  pass  upon  controversies  when  properly  sub- 
mitted at  any  place  designated  by  the  board:  Provided  further^  That 
such  subdivision  of  the  board  will  not  be  authorized  to  make  final 
decision.  All  decisions  shall  be  made  and  approved  by  the  entire 
board,  as  herein  provided. 

5.  Should  a  vacancy  occur  in  the  board  for  any  cause,  such  va- 
cancies shall  be  immediately  filled  by  the  same  appointive  authority 
which  made  the  original  selection. 

6.  (Article  6  left  blank  in  this  memorandum  because  article  6  for  Railway 
Board  of  Adjustment  No.  1  refers  to  matters  pertaining  to  tlie  Commission  of 
Eight.  In  order  that  all  other  articles  in  this  Memorandum  of  Understanding 
may  bear  the  same  numbers  as  similar  articles  for  Railway  Board  of  Adjust- 
ment No.  1,  article  No.  6  has  been  left  blank.) 

7.  The  Board  of  Adjustment  No.  2  shall  render  decisions  on  all 
matters  in  dispute  as  provided  in  the  jDi'eamble  hereof  and  wiien 
properly  submitted  to  the  board. 

8.  The  broad  question  of  wages  and  hours  will  be  considered  by 
the  Railroad  Wage  Connuission,  but  matters  of  controversies  arising 
from  interpretations  of  wage  agreements,  not  including  matters 
passed  upon  by  the  Railroad  Wage  Commission,  shall  be  decided  by 
the  Railway  Board  of  Adjustment  No.  2,  when  properly  presented 
to  it. 

9.  Wages  and  hours,  when  fixed  by  the  Director  General,  shall  be 
incorporated  into  existing  agreements  on  the  several  railroads,  and 
should  differences  arise  between  the  management  and  the  employees 
of  any  of  the  railroads  as  to  such  incorporation,  such  questions  of 
difference  shall  be  decided  by  the  Railway  Board  of  Adjustment  No. 
2,  when  properly  presented,  subject  always  to  review  by  the  Directoi 
General. 

10.  Personal  grievances  or  controversies  arising  under  interpreta' 
tion  of  wage  agreements,  and  all  other  disputes  arising  between 
officials  of  a  railroad  and  its  employees,  covered  by  this  understand- 
ing, will  be  handled  in  their  usual  manner  bv  general  committees  of 


303 

tlie  employees  up  to  and  including  the  chief  operating  officer  of  the 
railroad  (or  some  one  officially  designated  by  him),  when,  if  an 
agreement  is  not  reached,  the  chairman  of  the  general  committee  of 
employees  may  refer  the  matter  to  the  chief  executive  officer  of  the 
organization  concerned,  and  if  the  contention  of  the  employees'  com- 
mittee is  approved  by  such  executive  officer,  then  the  chief  operat- 
ing officer  of  the  railroad  and  the  chief  executive  officer  of  the 
organization  concerned  shall  refer  the  matter,  with  all  supporting 
papers,  to  the  Director  of  the  Division  of  Labor  of  the  United  States 
Railroad  Administration,  who  will,  in  turn,  present  the  case  to  the 
Eailway  Board  of  Adjustment  No.  2,  which  board  shall  promptly 
hear  and  decide  the  case,  giving  due  notice  to  the  chief  operating 
officer  of  the  railroad  interested  and  to  the  chief  executive  officer  of 
the  organization  concerned  of  the  time  set  for  hearing. 

11.  No  matter  will  be  considered  by  the  Railway  Board  of  Adjust- 
ment No.  2  unless  officially  referred  to  it  in  the  manner  herein  pre- 
scribed. 

12.  In  hearings  before  the  Railway  Board  of  Adjustment  No.  2, 
in  matters  properly  submitted  for  its  consideration,  the  railroad  shall 
be  represented  by  such  person  or  persons  as  may  be  designated  by 
the  chief  operating  officer,  and  the  employees  shall  be  represented 
by  such  person  or  persons  as  may  be  designated  by  the  chief  execu- 
tive officer  of  the  organization  concerned. 

13.  All  clerical  and  office  expenses  will  be  paid  by  the  United  States 
Railroad  Administration.  The  railroad  directly  concerned  and  the 
organization  involved  in  a  hearing  will,  respectively,  assume  any 
expense  incurred  in  presenting  a  case. 

14.  In  each  case  an  effort  should  be  made  to  present  a  joint  con- 
crete statement  of  facts  as  to  any  controversies,  but  the  board  is 
fully  authorized  to  require  information  in  addition  to  the  concrete 
statement  of  facts,  and  may  call  upon  the  chief  operating  officer  of 
the  railroad  or  the  chief  executive  officer  of  the  organization  con- 
cerned for  additional  evidence,  either  oral  or  written. 

15.  All  decisions  of  the  Railway  Board  of  Adjustment  No.  2  shall 
be  approved  by  a  majority  vote  of  all  members  of  the  board. 

16.  After  a  matter  has  been  considered  by  the  l)oard,  and  in  the 
event  a  majority  vote  can  not  be  obtained,  then  any  six  members  of 
the  board  may  elect  to  refer  the  matter  upon  which  no  decision  has 
been  reached  to  the  Director  General  of  Railroads  for  a  final  decision. 

17.  The  Railway  Board  of  Adjustment  No.  2  shall  keep  a  com- 
plete and  accurate  record  of  all  matters  submitted  for  its  considera- 
tion and  of  all  decisions  made  by  the  board. 

18.  A  report  of  all  cases  decided,  including  the  decision,  will  be 
filed  with  the  Director.  Division  of  Labor  of  the  United  States  Rail- 


304 

road  Administration,  with  the  chief  operating  officer  of  the  raih'oad 
affected,  the  several  regional  directors,  and  with  the  chief  executive 
officers    of   the    organizations    concerned. 

19.  This  understanding  shall  become  effective  upon  its  approval 
by  the  Director  General  of  Eailroads  and  shall  remain  in  full  force 
and  effect  during  the  period  of  the  present  war,  and  thereafter, 
unless  a  majority  of  tlie  regional  directors,  on  the  one  hand,  as  rep- 
resenting the  railroads,  or  a  majority  of  the  chief  executive  officers 
of  the  organizations,  on  the  other  hand,  as  representing  the  em- 
ployees, shall  desire  to  terminate  the  same,  which  can,  in  these  -cir- 
cumstances, be  done  on  thirty  (30)  days'  formal  notice,  or  shall  be 
terminated  by  the  Director  General  himself  at  his  discretion,  on 
thirty   (30)   davs'  formal  notice. 

A.  H.  Smith, 
C.  H.  Markham, 

E.  H.  AlSHTON, 

Regional  Directors  for  the  Railroads  under  Gocerniacat  Control. 

A.  O.  Wharton, 
President  Railway  Employees^  Dcpartnient. 
J.  F.  Anderson, 
•    Acting  President  International  Association  of  Machinists. 

Louis  Weyand, 
Acting  President  International  Brotherhood  of  Boiler 

Makers^  Iron  Ship  Builders  and  Helpers  of  America. 

G.  C.  Van  Dornes, 
Acting  Pi^sident  International  Brotherhood  of 

Blacksmiths  and.  Helpers. 

F.  H.  Knight, 

Acting  President  Brotherhood  Railicay  Carmen  of  America. 

Otto  E.  Hoard, 
Acting  President  Amalgamated  Sheet  Metal  Workers'' 

Intemationed-  AlJi-ance. 
Frank  J.  McXulty, 
President  International  Brotherhood  of  Electrical  Workers. 


N'oTE. — The  foregoing  memorandum  of  an  understanding  has  been 
signed  for  certain  of  the  organizations  by  "  acting  president."  This 
was  made  necessary  by  the  inability  of  the  presidents  of  these  or- 
ganizations to  be  present  in  person.  The  signatures  of  the  acting 
presidents  have  been  properly  authorized  and  are  accepted  by  the 
organizations  as  though  signed  by  the  presidents. 
Approved. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


305 
General  Ordku  Xo.  30. 

SETTLEMENT   Ol'   INli:U-ROAl>   HILLS   ANO   ACCOUNTS. 

AYashington,  June  12,  191 S. 
Efiective  July  1,  1918,  the  folloAving  regulations  shnll  govern  the 
settlement  of  all  inter-road  bills,  statements,  and  accounts  rendered 
by  one  carrier  under  Federal  control  against  or  for  account  of  an- 
other carrier  under  such  control. 

1.  Settlements  by  vouchers  and  the  drawing  of  drafts  in  settlement 
of  individual  inter-road  bills,  statements,  and  accounts  rendered  by 
one  carrier  under  Federal  control  against  another  carrier  under  such 
control,  except  as  provided  for  in  paragraph  2  hereof,  shall  be  dis- 
continued. 

2.  The  regulations  herein  prescribed  shall  not  include : 

(a)  Settlement  of  accounts  between  a  carrier  under  Federal  con- 
trol and  a  carrier  not  under  such  control. 

{h)  Settlement  of  accounts  between  carriers  under  Federal  con- 
trol for  transactions  which  do  not  properly  belong  on  the  Federal 
books  of  either  carrier  interested. 

3.  Each  bill,  statement,  or  account  made  and  rendered  by  one  car- 
rier under  Federal  control  against  or  in  favor  of  another  carrier 
under  such  control,  and  forwarded  on  and  after  July  1.  1918,  shall  be 
plainly  stamped  on  the  face  thereof,  as  follows:  "Included  in  settle- 
ment, month  of .  191__."     Such  stamp  shall  indicate  the 

month  in  which  the  amount  represented  by  the  account  will  be  in- 
cluded for  settlement  hj  the  carrier  rendering  the  account,  and  it 
shall  be  included  in  the  same  month's  settlement  account  by  the  re- 
ceiving carrier.  Xo  such  bill,  statement,  or  account  made  ancX 
rendered  in  one  month  shall  be  back-dated  for  a  prior  month. 

4.  On  the  first  of  each. month  each  carrier  shall  prepare  and  render 
each  other  carrier  with  which  it  has  inter-road  transactions,  as  a 
basis  for  a  settlement  for  the  month  just  ended,  a  stateuient  of  debits 
r.nd  credits,  in  abstract,  showing  the  nature  and  total  of  each  bill, 
statement,  or  acc(Mmt  forwarded  by  it  to  each  other  carrier  during 
the  preceding  month. 

5.  There  shall  be  opened  as  of  July  1,  1918,  on  the  Federal  books  of 
each  carrier,  a  clearance  or  settlement  account  with  each  other  car- 
rier mider  Federal  control  with  which  it  has  inter-road  transactions. 

6.  As  inter-road  bills,  statements,  or  accounts  are  made  and  ren- 
dered they  shall  be  charged  or  credited  as  the  case  may  be,  through 
the  clearance  or  settlement  account  prescribed  in  the  preceding 
])aragraph. 

.     1058S9°— 19 20 


306 

7.  As  inter-road  bills,  statements,  or  accounts  are  received  they 
shall  be — 

(a)   Examined  as  to  correctness,  as  prescribed  in  General  Order 

Ko.  20. 

(5)   Charged  or  credited  to  the  appropriate  operatino;  or  other 

account. 

(c)  Credited  or  charged  (as  the  case  may  be)  by  the  receiving 
carrier  to  the  carrier  originating  the  account  through  the  appropriate 
clearance  or  settlement  account  prescribed  in  paragraph  5  hereof. 

8.  The  total  of  each  statement  for  a  given  month  shall  be  accepted 
as  rendered,  and  on  or  before  the  15th  day  of  each  month  subsequent 
to  that  for  which  such  statement  was  rendered  the  creditor  carrier 
shall  draw  upon  the  debtor  carrier  for  the  balance  between  the  two 
statements  exchanged  by  them. 

9.  In  the  event  the  statement  referred  to  in  paragraph  4  indicates 
that  the  originating  carrier  has  charged  or  credited  the  other  carrier 
with  a  bill,  statement,  or  account  which  has  not  been  received,  the 
carrier  to  which  the  statement  is  rendered  shall  accept  the  account 
and  credit  or  debit  the  originating  carrier  therewith  to  the  debit  or 
credit  of  a  suspense  account.  Such  receiving  carrier  shall  immedi- 
ately take  the  matter  up  with  the  originating  carrier  for  the  purpose 
of  olcating  the  missing  bill,  statement,  or  accoimt.  If  it  be  found 
that  such  amount  was  included  in  the  statement  in  error,  adjustment 
shall  be  made  therefor  in  a  subsequent  statement.  If  manifest  errors 
be  found  in  such  statements  by  a  receiving  carrier,  the  attention  of 
the  originating  carrier  shall  be  called  thereto  and  such  error  or 
errors  shall  be  adjusted  in  the  statement  for  the  subsequent  month. 

W.  G.  McAdoo, 
Director'  General  of  Ra>J roads. 


General  Order  No.  31. 

Washixgtox,  D.  C,  June  12,  1918. 
Effective  July  1,  1918,  the  following  rules  and  regulations  shall 
goA-ern  the  accounting  for  the  use  of  equipment  or  facilities  of  one 
carrier  under  Federal  control  by  or  for  the  account  of  another  carrier 
under  such  control,  provided  nothing  herein  contained  shall  be  con- 
strued to  warrant  the  discontinuance  of  the  keeping,  rendition,  and 
settlement  of  such  accounts  by  a  carrier  under  Federal  control  in 
favor  of  or  against  a  carrier  not  under  Federal  control,  in  the  same 
manner  as  heretofore. 

T.    HIRE  OF  rRETGlIT  AXD  PASSENGER  TRAIN   EQUIPMENT. 

1.  The  practice  of  recording,  computing,  and  paying  per  diem, 
mileage,  or  rent:il  for  the  use  of  freight  nnd  passenger  train  cars  of 


307 

one  carrier  under  Federal  control  by  or  for  account  of  another 
carrier  under  Federal  control,  and  the  adjustment  of  differences, 
reclaims,  etc.,  between  such  carriers  which  clearly  relate  to  transac- 
tions incurred  on  or  after  January  1,  1918,  shall  be  discontinued. 

2.  Junction  cards,  interchange  reports,  location  records,  and  all 
other  records  and  reports  necessary  to  determine  the  location  of 
equipment  shall  be  kept,  rendered,  and  compiled  as  heretofore. 

II.    JOIXT   FACILITIES BILLS   FOR   USE   OF, 

3.  Effective  with  costs  incurred  on  and  aft-er  July  1,  1918,  bills 
rendered  by  one  carrier  under  Federal  control  agaiiist  anjother 
carrier  under  such  control  for  maintaining  and  operating  (including 
taxes  and  rental)  tracks,  yards,  terminals  and  other  facilities,  includ- 
ing costs  to  operate  equipment  used  therein,  shall  be  computed, 
rendered,  charged,  and  paid  on  the  following  bases : 

(a)  In  cases  where  the  tenancj^  is  not  changed  under  Government 
operations:  The  total  cost  of  maintenance,  operation,  taxes,  and 
rental,  as  provided  for  under  existing  agreements,  and  the  amounts 
thereof  borne  by  each  user,  for  a  period  not  less  than  six  months 
ended  December  31,  1917,  shall  be  determined  by  the  owning  or 
operating  carrier.  From  such  costs  the  percentage  of  the  total  borne 
by  each  user  to  the  total  costs  shall  be  determined.  The  percentages 
thus  determined  shall  be  applied  monthly  to  the  total  costs  incurred 
on  and  after  July  1,  1P18,  and  bills  shall  be  rendered  and  paid  on  the 
results  thus  obtained. 

(b)  In  cases  where  tenants  or  users  are  admitted  to  facilities  not 
heretofore  jointh*  used:  Federal  managers  of  the  facilities  to  be 
jointly  used  shall  determine,  as  between  themselves,  a  fair  and  equi- 
table arbitrary  basis  for  the  apportionment  of  the  total  costs  of  main- 
tenance, operation,  taxes,  and  rental  which  should  be  paid  by  each 
tenant.  Such  basis  shall  thereafter  during  the  period  of  Federal 
control  be  used  by  the  owning  carrier  as  a  basis  for  preparation  and 
rendition  of  bills  against  the  tenants  or  users,  and  such  tenants  or 
users  shall  pay  such  bills  as  rendered. 

(c)  In  cases  where  the  number  of  tenants  or  users  of  facilities  now 
used  by  tenants  under  agreements  with  owners  is  increased  or  de- 
creased: The  literal  compliance  with  the  terms  of  such  agreements 
shall  be  temporarily  suspended  for  the  period  of  Federal  control, 
and  a  fair  and  equitable  basis  of  use  shall  be  determined  as  pre- 
scribed in  paragraph  (h)  preceding,  except  that  due  regard  shall  be 
given  to  the  terms  of  existing  agreements  in  fixing  such  arbitrary 
basis. 

(d)  In  cases  where  a  lump-sum  charge  has  been  made  by  an  own- 
ing or  operating  carrier  which  is  under  Federal  control  for  the  use 


308 

of  a  facility  used  by  another  carrier  which  is  under  such  control, 
such  bills  for  the  lump-sum  charge  shall  be  rendered  and  paid  dur- 
ing Federal  control  as  heretofore;  provided,  however,  if  there  be  a 
change  in  such  tenancy  by  the  admittance  of  other  tenants  or  other- 
wise, and  the  contractual  basis  upon  which  the  lump-sum  charge  is 
made  disturbed  thereby,  an  arbitrary  basis  of  charge  by  the  owner 
against  the  tenant  or  tenants  shall  be  determined  as  prescribed  in 
paragraph   (h)  hereof. 

4.  Details  heretofore  required  in  support  of  joint  facilities  bills, 
statements,  and  accounts  shall  be  discontinued,  except  that  such  bills 
shall  show  the  totals  chargeable  and  creditable  to  the  primary  operat- 
ing revenue,  expense,  tax,  and  rental  accounts  prescribed  by  the  Inter- 
state Commerce  Commission,  or  which  may  hereafter  be  prescribed. 

5.  If  materials  and  supplies  the  value  of  which  is  carried  in  the 
accounts  of  one  carrier  under  Federal  control  be  used  by  another  car- 
rier under  such  control  for  maintaining  or  operating  equipment  or 
facilities  jointly  used,  the  value  at  which  such  materials  and  supplies 
are  carried  in  the  accounts  of  the  carrier  furnishing  them  shall  be 
billed  against  and  paid  for  by  the  carrier  using  them  as  heretofore, 
except  that  percentages  for  overheads  and  other  carrying  expenses 
shall  not  be  added  to  the  cost  thereof. 

W.  G.  :McAdoo. 
Director  General  of  Bail  roads. 


General  Order  Xo.  3-2. 

Washington,  D.  C.  Jwu  29.  1918. 
Effective  with  the  settlement  of  interline  passenger  accounts  for 
the  month  of  June,  1918,  and  thereafter,  during  the  period  of  Fed- 
eral control,  the  following  rules  and  regulations  shall  govern  the 
apportionment  of  revenues  from  the  sale  of  tickets,  collection  of  ex- 
cess baggage  revenues,  and  other  analogous  revenues,  derived  from 
interline  passenger  service.  l)y  one  road  under  Federal  control  to 
other  roads  under  such  control : 

(1)  Interline  passenger  revenue  shall  be  apportioned  to  interested 
carrier  under  Federal  control  by  the  initial  carrier  on  bases  of  mile- 
age applying  via  route  over  which  the  serA^ice  is  performed. 

(2)  Each  selling  carrier  shall  determine  monthly: 

{a)  The  total  passengers  carried  1  mile  separately  for  each  carrier 
over  whose  line  tickets  are  sold. 

{h)  The  total  revenue  applicable  to  the  total  passengers  carried 
1  mile,  as  determined  by  {a). 


309 

{c)  The  average  revenue  per  passenger  per  mile  by  dividing  the 
total  revenue  (b)  by  the  total  passengers  carried  1  mile  {a)  ;  such 
average  to  be  extended  to  four  points  beyond  the  decimal. 

(d)  The  revenue  accruing  to  each  carrier  by  multiplying  the  pas- 
sengers carried  1  mile  for  each  carrier  (a)  by  the  average  revenue  per 
l^assenger  per  mile   (c). 

(3)  The  revenues  derived  from  the  various  classes  of  traffic,  such  a  ; 
mileage  and  scrip  exchange  passage  tickets,  excess  train  fare  tickets 
or  coupons,  etc..  vrhich  are  based  upon  rates  other  than  three  (3)  cents 
per  mile,  shall  be  eliminated  from  the  regular  sales  and  apportioned 
separately  on  the  passengers  carried  1  mile  basis.  This  should  also 
be  done  in  the  case  of  special  excursion,  military,  or  other  traffic  inter- 
changed between  tvro  or  more  carriers  where,  if  included,  it  would 
serve  to  distort  the  average  revenue  per  passenger  per  mile  that  would 
obtain  for  otlier  carriers  interested  in  the  distribution  of  the  entire 

sales. 

(4)  Excess  baggage  revenue  shall  be  divided  on  the  same  general 

basis. 

(5)  A  carrier  which,  on  and  after  June  10.  1918.  may  have  a  stand- 
ard rate  of  fare  in  excess  of  three  (3)  cents  per  mile  shall  be  allowed, 
in  the  apportionment  of  revenue  on  interline  tickets,  a  constructive 
mileage ;  such  constructive  mileage  shall  be  based  on  the  ratio  that 
the  excess  rate  bears  to  the  standard  rate  of  three  (3)  cents  per  mile. 
Carrier  should  not  claim  constructive  mileage  when  fares  to  be 
divided  are  not  made  a  combination  of  the  local  fares  based  on  the 
higher  rat«  per  mile.  Revenue  derived  from  such  traffic  should  be 
apportioned  as  provided  in  paragraph  3. 

(6)  The  selling  carrier  shall  be  held  responsibile  for  the  correct- 
ness of  rates  and  the  collection  of  the  proper  revenues  derived  there- 
from. 

(7)  The  initial  or  reporting  carrier  shall  be  held  responsible  for 
the  prompt  and  proper  reporting  and  distribution  of  interline  reve- 
nues collected  by  it  in  the  manner  herein  prescribed.  Claims  should 
be  made  for  unreported  tickets.  Claims  for  substantial  errors  in  ap- 
portionment, due  to  the  use  of  erroneous  mileage  or  erroneous  aver- 
age revenue  per  passenger  per  mile,  shall,  if  correct,  be  accepted  and 
adjusted  in  reports  for  the  subsequent  month.  Claims  for  arithmeti- 
cal errors,  such  as  errors  in  calculation,  addition,  etc.,  which  affect 
a  single  carrier's  proportion  to  the  extent  of  $5  in  any  one  item, 
shall  likewise  be  made,  and  if  correct,  adjusted:  no  adjustments  shall 
be  made  for  such  errors  under  $5. 

(8)  Land-grant  revenues  and  revenues  affected  by  land-gi'ant 
equalizations,  shall,  until  otherwise  ordered,  be  reported  and  ap- 
portioned separately  on  bases  heretofore  applicable. 


310 

(9)  Arbitraries  on  account  of  water  transfers,  bridge  tolls,  om- 
nibus and  baggage  transfers  and  other  similar  arbitraries  heretofore 
considered  in  the  division  of  interline  fares,  shall  be  allowed  to  the 
carrier  to  which  such  arbitraries  accrue.  Proportions  accruing  to 
carriers  not  under  Federal  control,  including  boat  and  stage  lines, 
etc.,  shall  also  be  determined  and  allowed  on  regular  bases  heretofore 
in  effect,  and  reported  direct  to  such  lines ;  such  arbitraries  and  pro- 
portions shall  be  deducted  from  the  gross  revenue  and  the  remainder 
shall  be  used  in  establishing  the  average  revenue  per  passenger  per 
mile  for  apportionment  of  revenues  to  carriers  under  Federal 
control. 

(10)  Interline  passenger  revenues  shall  be  reported  to  interested 
carriers  in  such  manner  and  on  such  forms  as  may  be  prescribed  by 
the  Director  of  Public  Service  and  Accounting,  in  instructions  to  be 
issued  by  him,  which  instructions  shall  be  complied  with.  For  the 
present  the  standard  association  form  of  blanks  may  be  used. 

(11)  The  methods  herein  prescribed  for  apportioning  interline 
passenger  revenues  should  be  extended  to  carriers  not  under  Federal 
control  as  far  as  practicable;  therefore,  should  carriers  not  under 
such  control  desire  to  avail  themselves  of  the  simplified  bases  for  ap- 
portioning interline  passenger  revenues,  as  herein  prescribed,  in 
conjunction  with  carriers  under  such  control,  arrangements  may  be 
made  between  such  interested  carriers  for  the  extension  of  such 
methods. 

W.  G.  McAdoo, 
Director-  General  of  Railroads. 


General  Order  No.  33. 

(Reprint  of  July  12,  1918.) 

Washixgtox,  Jvihj  10,  1918. 
Mr.  G.  A.  Tomlinson,  General  Manager  of  the  New  York  Canal 
Section  of  the  United  States  Railroad  Administration,  is  appointed 
Federal  Manager  of  New  York  and  New  Jersey  Canals,  effective 
July  15,  1918,  and  as  such  will  perform  the  functions  heretofore  per- 
formed by  him  as  General  Manager  of  Now  York  Canal  Section  of 
th(>  United  States  Railroad  Administration,  and  in  addition  will 
operate  for  the  Director  General  upon  the  Delaware  &  Raritan  Canal 
and  connecting  waters  such  equipment  as  the  United  States  Railroad 
Administration  now  has  in  its  possession  and  control  engaged  in  such 
operation  and  such  additional  cc(uipmont  as  may  bo  assigned  for  that 
purpose.  Ho  is  authorized  to  enforce  and  collect  such  toll  charges 
as  are  or  may  hereafter  be  established  for  the  use  of  the  Delaware  & 
Raritan  Canal  by  boats  operated  by  others  and  empowered  to  enter 


311 


into  contracts,  oitlier  in  his  own  name  as  such  Federal  Manager  or 

in  the  name  of  the  Director  General  of  Railroads,  for  the  purchase 

of  supplies  needed  in  such  operation  and  for  the  transportation  of 

property  ui)on  such  Canal  and  other  waters. 

^     ^       -^  W.  G.  McAdoo, 

Director  General  of  Railroads. 


General  Okder  No.  34. 

[Ci'iu'i-al  Order  No.  o-i  is  superseded  l»y  General  Order  No.  34-A.] 

Washington,  Julij  10,  1918. 

Carriers  subject  to  Federal  control  shall  sell  at  public  auction  to 
the  highest  bidder,  without  advertisement,  carload  and  less  than  car- 
load nonperishable  freight  that  has  been  refused  or  is  unclaimed 
by  consignee  and  has  been  on  hand  for  a  period  of  sixty  days.  The 
consignee,  as  described  in  the  waybilhng,  shall  be  given  due  notice 
by  mail  of  the  proposed  sale. 

Perishable  freight  shall  be  sold  whenever  in  the  judgment  of  the 
agent  or  other  representative  of  the  carrier  it  is  necessary  to  do  so, 
such  reasonable  effort  being  made  to  notify  the  consignee  as  de- 
scribed in  the  waybilhng  as  the  circumstances  wiU  permit. 

The  place  of  sale  of  both  nonperishable  and  perishable  freight 

shall  be  determined  by  the  carrier.     The  net  proceeds,  if  any,  after 

deducting  freight  and  other  legitimate  expenses,  will  be  paid  over 

t.)  the  owner  on  proof  of  ownership. 

W.  G.  McAdoo, 

Director  General  of  Railroads. 


General  Order  Xo.  o-l-A. 

Washington,  D.  C,  Octoljcr  i,  1918. 

General  Order  No.  34  is  hereby  revoked  and  General  Order  No. 
34^A  substituted  in  place  thereof. 

Carriers  subject  to  Federal  control  shall  sell  at  public  auction  to 
the  highest  bidder,  without  advertisement,  carload  and  less  than  car- 
load nonperishable  freight  which  has  been  refused  or  is  unclaimed  at 
destination  by  consignees  after  the  same  has  been  on  hand  60  days. 
Consignees,  as  described  in  the  wavbilling,  shall  be  notified  of  arrival 
of  shipments  in  all  cases,  and  such  notice  shall  contain  provisions  that 
after  freight  is  unclaimed  or  undelivered  for  15  days  after  expiration 
of  free  time  at  destination  it  will  be  treated  as  refused  and  will  be 
sold  without  further  notice  60  days  from  date  of  notice  of  arrival. 

Consignors  shall  be  notified  when  freight  is  refused  or  is  unclaimed, 
as  provided  above,  when  the  consignor  can  be  determined  from  the 


312 

billing  or  when  shipments  are  marked  v^ith  the  consignor's  name  and 
address;  such  notice  to  contain  proA'isions  that  unless  proper  orders 
for  disposition  are  receiAed  on  or  before  a  specified  date,  not  earlier 
than  GO  days  from  date  of  arrival  and  notice  to  consijrnee,  the  sliip- 
ment  will  be  sold  for  charges  without  further  notice. 

Perishable  freight  may  be  sold  in  the  discretion  of  the  carrier 
■whenever  necessary  to  prevent  waste,  without  notice  except  to  con- 
signee. Such  reasonable  effort  shall  be  made  to  notify  the  consignee 
as  described  in  the  waybilling  as  the  circumstances  will  permit. 

Deposit  in  the  mail  of  notices  in  accordance  herewith  shall  be  con- 
strued as  sufficient  notice  to  all  concerned  and  a  record  shall  be  r.iade 
thereof  by  the  employee  who  mails  the  same. 

The  place  of  sale  of  both  perishable  and  nonperishable  freight  shall 
be  determined  by  the  carrier;  the  net  proceeds,  if  any.  after  deduct- 
ing freight  and  other  legitimate  expenses,  will  be  paid  to  the  owner 
on  proof  of  interest. 

Nothing  herein  contained  shall  affect  the  provisions  for  notice  to 
consignor  of  unclaimed  or  refused  shipment  of  explosives  or  other 
dangerous  articles,  or  for  telegraphic  notice  to  consignees  of  un- 
claimed and  refused  shipments  at  his  expense  and  on  his  request,  or 
other  special  provisions  for  notice  to  consignors,  where  such  provi- 
sions are  contained  in  the  storage  rules  of  the  carrier,  or  other  rules 
contained  in  tariffs  on  file  with  the  Interstate  Commerce  Commission, 
except  that  where  notice  of  refusal  is  given  to  the  consignor  under 
such  tariff  rules,  it  shall  include  the  notice  of  sale  after  GO  days  aljove 
provided  for,  and  notice  need  not  be  repeated  under  this  order. 

W.  G.  JMcAdoo, 
Director  General  of  Railroad fi. 


General  Order  No.  35. 

Washington,  Jul]!  11,  191S. 

Effective  this  date,  Mr.  M.  J.  Sanders  is  hereby  appointed  Federal 
Manager  of  Mississippi  and  Warrior  Waterways  for  the  United 
States  Railroad  Administration,  with  headquarters  at  New  Orleans, 
Louisiana,  and,  as  such,  will  have  charge  of  the  construction  and 
acquisition  of  equipment  for  use  upon  the  Mississippi  River  between 
St.  Louis  and  New  Orleans,  and  for  use  upon  the  Warrior  River 
between  the  Alabama  coal  fields  and  Mobile,  and  in  connection  there- 
with for  use  upon  the  Mississippi  vSound  and  connecting  waters 
between  Mobile  and  New  Orleans,  and  will  operate  such  equipment 
for  the  Director  General  of  Railroads  upon  all  such  waters. 

He  is  h(^reby  empowered  to  enter  into  contracts,  eitlier  in  his  owTi 
name  as  such  Federal  Manager  or  in  the  name  of  the  Director  Gen- 
oral  of  Railroads,  for  the  construction,  acquisition,  or  chartering  of 


313 

such  equipment,  for  the  purchase  of  supplies  needed  in  such  opera- 
tions, and  for  the  transportation  of  traffic  upon  all  such  waters. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  No.  36. 

Washington,  July  18,  1918. 
Premiums  on  fidelity  bonds,  wliich  have  heretofore  been  paid  by 
or  charged  to  officers,  agents,  and  employees  on  transportation  lines 
now,  or  which  may  hereafter  be  placed,  under  Federal  control,  sliall 
no  longer  be  so  handled,  but  shall  be  charged  to  operating  expenses. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  No.  37. 

Washington,  July  19,  1918. 

(1)  The  Local  Treasurers  appointed  by  Federal  Managers  or  by 
General  Managers  appointed  in  lieu  of  Federal  Managers,  shall  here- 
after be  designated  "Federal  Treasurers"  and  are  expected  to  devote 
themselves  exclusively  to  the  work  of  the  United  States  Railroad 
Administration.  They  ought  not  to  handle  any  funds  for  a  railroad 
corporation  or  perform  any  other  services  therefor  except  in  special 
cases  after  obtaining  express  authority.  The  Federal  Treasurers 
should  be  nominated  by  the  Federal  Manager  (or  General  Manager 
appointed  in  lieu  of  Federal  Manager),  and  the  nomination,  when  it 
shall  have  been  approved  by  the  Regional  Director,  should  be  trans- 
mitted to  the  Director  of  the  Division  of  Fmance  for  consideration 
and  final  action.  In  cases  where  Federal  Treasurers  have  already 
been  appointed  the  appomtments  should  be  submitted  promptly 
through  the  Regional  Director  with  his  recommendations  for  con- 
firmation by  the  Director  of  the  Division  of  Finance. 

(2)  Immediately  upon  the  appointment  of  Federal  Treasurers  the 
designation  of  the  bank  accoimt  subject  to  check  of  such  Fe^leral 
Treasurers  shall  be  "  (Name  of  Railroad),  Federal  Account." 

(3) 

(a)  All  cash  representing  receipts  from  the  operations  of  its 
railroad  since  and  including  January  1,  1918,  now  in 
the  hands  of  the  railroad  corporation  for  whose  railroad 
a  Federal  Treasurer  has  been  appointed,  or  held  for 
account  of  the  corporation,  and 

\b)  Any  and  aU  other  cash  now  in  the  hands  of  such  railroad 
corporation  or  held  for  its  account  for  use  in  connection 
'with  the  operation  or  im.provement  of  its  railroad 


314 

shall  he  at  once  transferred  by  the  railroad  corporation  to  accounts 
in  the  same  banks  in  which  it  is  now  held,  designated  as  prescribed 
in  paragraph  (2)  hereof,  which  shall  be  subject  to  check  by  the  Fed- 
eral Treasurer. 

(4)  Federal  Treasurers  shall  draw  on  the  new  accounts  thus  to  be 
opened  and  subject  to  their  check  only  for 

(a)  the  payment  of  materials  and  supplies  purchased  since 

December  31,  1917. 
(h)  the  payment  of  operating  expenses  and  taxes    (other 
than  the  war  income  tax  and  the  excess  profits  tax) 
accrued  since  December  31,  1917,  and 
(c)   the  payment  of  such  addition  and  betterment  costs  as 
may  be  approved  by  the  Federal  Manager  (or  General 
Manager  appointed  in  lieu  of  the  Federal  Manager). 
Federal  Treasurers  shall  not  draw  on  such  accounts  for  an}-  other 
purposes  except  when  expressly  authorized  to  do  so  by  the  Director 
of  the  Division  of  Finance  and  Purchases. 

(5)  A  specimen  form  of  check  which  has  been  approved  for  use  by 
all  railroads  under  Government  control  is  attached  hereto.  In  or- 
dering checks  for  the  use  of  the  railroad  the  Federal  Treasurer  will 
follow  as  closely  as  practicable  the  general  arrangement  and  language 
of  the  specimen  form.  The  account  with  every  bank  must  be  stated 
in  the  name  of  the  railroad  with  the  name  ''Federal  Accomit"  im- 
mediately following  on  the  same  line  as  shown  m  the  attached 
specimen. 

(6)  Until  further  ordered  checks  signed  by  the  Treasurer  should 
be  countersigned  according  to  the  practice  now  in  vogue  on  the  dif- 
ferent roads  where  regulations  now  call  for  such  countersignatures. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


o 

55 


tFonn  of  check  attached  to  and  made  a  part  of  General  Order  No.  37.] 

MwM  ^tateHailrnali  Atimiiiiaimtiun . 

W.  G.  MC  Ado  O,  Director  Gkneral  . 

^A^'TO OR  ORDER.  $ 


TO 


-DOLAAKS. 


.,„^ ^,  „         1  ^^oRrfffS-SormR.R.  Federal  AccocrjVT. 

IJBERTV  National  bank,1^^'^7->ws"'^'S^o 

Wash i ngton.  l) .  G .    | r^^,^^  77?&.^c/ai^:  • 


315 
General  Order  No.  37-A. 

Washington,  August  1,  1918. 
General  Order  No.  37  of  July  19,  1918,  is  hereby  revised  to  read  as 
follows — (the  words  underscored  indicating  the  additions  to  the  Order 
as  originally  issued) : 

(1)  The  Local  Treasurers  appointed  by  Federal  Managers,  or  by 
General  Managers  appointed  in  lieu  of  Federal  Managers,  shall  here- 
after be  designated  "Federal  Treasurers"  and  are  expected  to  devote 
themselves  exclusively  to  the  work  of  the  United  States  Railroad 
Administration.  They  ought  not  to  handle  any  funds  for  a  railroad 
corporation  or  perform  any  other  services  therefor  except  in  special 
cases  after  obtaining  express  authority. 

The  Federal  Treasurers  should  be  nominated  by  the  Federal  Man- 
ager (or  General  Manager  appointed  in  lieu  of  Federal  Manager), 
and  the  nomination,  when  it  shall  have  been  approved  by  the  Regional 
Director,  should  be  transmitted  to  the  Director  of  the  Division  of 
Finance  for  consideration  and  final  action.  In  cases  where  Federal 
Treasurers  have  already  been  appointed  the  appointments  should  be 
submitted  promptly  through  the  Regional  Director  with  his  recom- 
mendations for  confirmation  by  the  Director  of  the  Division  of 
Finance. 

(2)  Immediately  upon  the  appointment  of  Federal  Treasurers  the 
designation  of  the  bank  account  subject  to  check  of  such  Federal 
Treasurers  shall  be  "  (Name  of  Railroad),  Federal  Account." 

(3) 

(a)  All  cash  representing  receipts  from  the  operations  of  its 
railroad  since  and  including  January  1,  1918,  now  in 
the  hands  of  the  railroad  corporation  for  whose  rail- 
road a  Federal  Treasurer  has  been  appointed,  or  held 
for  account  of  the  corporation ;'  and 
(h)  Any  and  all  other  cash  now  in  the  hands  of  such  railroad 
corporation  or  held  for  its  account  for  use  in  connec- 
tion with  the  operation  or  improvement  of  its  railroad 
shall  be  at  once  transferred  by  the  raihoad  corporation  to  accounts  in 
the  same  banks  in  which  it  is  now  held,  designated  as  prescribed  in 
paragraph  (2)  hereof,  which  shall  be  subject  to  check  by  the  Federal 
Treasurer. 

(4)  Federal  Treasurers  shall  draw  on  the  new  accounts  thus  to  be 
opened  and  subject  to  their  check  only  for 

(a)  The  payment  of  materials  and  supplies  purchased  since 
December  31,  1917;  and  also  of  materials  and  supplies 
purchased  prior  to  December  31,  1917, 


316 

(&)  the  payment  of  operating  expenses  (including  approved 
claims  for  personal  injuries  and  loss  and  damage),  and 
also  equipment  and  joint  facility  rents,  traffic  bal- 
ances,  overcharges  and  taxes  (other  than  the  war  in- 
come tax  and  the  excess-profits  tax)  accrued  smce 
December  31,  1917;  and  also  all  items  clearly  appli- 
cable to  the  period  prior  to  January  1,  1918,  com- 
monly  called  "lap-overs,"  which  are  required  to  be 
set  up  on  the  Federal  books  pursuant  to  Order  No.  17. 
(c)  the  payment  of  siich  addition  and  betterment  costs  as 
may  be  approved  by  the  Federal  Manager  (or  General 
Manager  appointed  in  lieu  of  the  Federal  Manager). 
Federal  Treasurers  shall  not  draw  on  such  accounts  for  any  other 

purposes  except  when  expressly  authorized  to  do  so  by  the  Director 

of  the  Division  of  Finance  and  Purchases. 

(5)  A  specimen  form  of  check  which  has  been  approved  for  use  by 
all  railroads  under  Government  control  is  attached  hereto.  In  order- 
ing checks  for  the  use  of  the  railroad  the  Federal  Treasurer  will  follow 
as  closely  as  practicable  the  general  arrangement  and  language  of  the 
specimen  form.  The  account  with  every  bank  must  be  stated  in  the 
name  of  the  railroad  with  the  name  "Federal  Account"  immediately 
following  on  the  same  line  as  shown  in  the  attached  specimen. 

(6)  Until  further  ordered  checks  signed  by  the  Treasurer  should  be 
countersigned  according  to  the  practice  now  in  vogue  on  the  different 
roads  where  regulations  now  call  for  such  countersignatures, 

W.  G.  McAdoo, 
Director  General  of  Railroads. 

[Slip  attached  to  and  forming  a  part  of  General  Order  No.  37-A.] 

The  specimen  check  which  accompanied  Order  No.  37  should  gov- 
ern, except  that  the  heading  thereof  should  be  changed  to  read: 

"UNITED  STATES  RAILROAD  ADMINISTRATION 

"W.  G.  McAdoo,  Director  General  of  Railroads." 


Generat>  Order  No.  38. 

Washington,  D.  C,  July  24,  WIS. 

Pursuant  to  the  Act  approved  March  21,  1918,  entitled  "An  Act 

to  provide  for  the  operation  of  transportation  systems  while  under 

Federal  Control,  for  the  just  compensation  of  their  owners,  and  for 

other  purposes,"  it  is  ordered  that  on  and  after  the  15th   day  of 


317 

August,  1918,  tlie  following  requirements  and  provisions  shall  apply 
and  be  observed  in  respect  to  the  shipments  hereinafter  described: 
1.  Shipments  intended  for  use  of  any  one  of  the  Government 
Departments,  either  directly  or  through  a  contractor  with 
the  United  States  Government,  shall  not  be  entitled  to  or 
receive  any  privilege  which  may  be  accorded  on  account  of 
being  intended  for  use  of  one  of  the  United  States  Govern- 
ment Departments,  either  directl}^  or  indirectly  through  a 
contractor  with  the  United  States  Government,  where  said 
shipments  are  consigned  otherwise  than  in  one  of  the  fol- 
lowing ways: 

(a)  To  a  Government  officer  designated,  not  by  the  name 

of  the  individual,  but  by  the  title  of  his  position;  as, 
for  example:  Supply  Officer,  Naval  Inspector,  or 
Constructing  Quartermaster. 

(b)  To  a  Government  officer  designated  not  by  name  but  by 

title  as  above,  followed  by  the  words  "For  account 
of,"  and  then  followed  by  the  name  of  the  contractor 
or  agent  for  the  Government  engaged  on  the  work  at 
the  point  of  destmation. 

(c)  On  some  contracts  the  Government  has  entered  into  an 

agreement  designating  certain  parties  as  agent,  or 
agents,  for  the  Government  on  that  particular  con- 
tract. Shipments  for  such  parties  shall  be  consigned 
to  the  particular  Department  for  which  the  work  is 
being  done,  followed  by  the  words  "For  account  of," 
and  then  followed  by  the  name  of  the  agent,  as,  for 
instance: 

Ordnance   Department:  For   account    of   duPont 
Engineering  Co.     Agent,  Penniman,  Williams- 
burg, Va. 
or 

Oi-dnance  Department:  For  account  of  T.  A.  Gil- 
lespie,  Loading   Co.,    Agents.     South   Amboy, 
N.J. 
id)  Shipments  of  material,  equ;ipmeut  and  supplies  for  any 
person  repahing  or  building  ships  under  the  supervi- 
sion of  the  United  States  Shipping  Board  Emergency 
Fleet  Corporation,  shall  be  consigned  only  to  the 
United  vStates  Shipping  Board  Emergency  Fleet  Cor- 
poration, followed  by  the  words  "For  account  of" 
and  then  followed  by  the  name  and  location  of  the 
particular  concern  performing  the  work,  as,  for  in- 
stance : 

United  States  Shipping  Board  Emergency  Fleet 
Corporation:  For  account  of  American  Interna- 
tional Shipbuilding  Corporation,  Hog  Island,  Pa. 


318 

2.  It  is  forbidden — 

(a)  In  consigning  a  shipment  to  use  the  words,  "United 
States  Government"  or  substantially  that  term,  or 
abbreviations  thereof,  as  the  sole  description  of  the 
consignee ; 

(&)  Or  to  consign  a  shipment  to  and  in  the  name  of  the 
United  States  Government  followed  by  words  indi- 
cating that  it  is  sent  "care  of"  a  private  person, 
firm,  or  corporation; 

(c)  Or  to  consign  a  shipment  to  a  Government  official  or  to 

an  officer  of  the  Army  or  Navy  by  his  name  as  an 
individual ; 

(d)  Or  to  consign  a  shipment  to  a  Government  official  or  to 

an  officer  of  the  Army  or  Navy  followed  by  words 
indicating  that  it  is  sent  "care  of  "  a  private  person, 
firm,  or  corporation. 

3.  No  shipper  or  other  person  seeking  or  obtaining  any  privilege 

which  may  be  accorded  on  account  of  the  shipment  being 
intended  for  the  use  of  any  one  of  the  United  States  Gov- 
ernment Departments,  either  directly  or  indirectly  through 
a  contractor  with  the  United  States  Government,  shall 
without  authority  use  or  cause  to  be  used  as  consignee 
the  name  or  title  of  the  United  States  or  of  any  depart- 
ment, bureau,  agency,  employee,  or  officer  thereof,  or  of 
the  United  States  Shipping  Board  Emergency  Fleet  Cor- 
poration or  of  any  officer,  agent,  employee  thereof,  or  of 
any  other  person,  or  the  designation  "Emergency  Fleet 
Corporation" ;  nor  shall  any  shipper  or  other  person  offer 
or  cause  to  be  received  for  carriage,  or  transported,  without 
authority,  any  such  shipment  consigned  as  specified  in 
the  foregoing  paragraphs  number  1  and  2,  for  the  purpose 
of  securing,  by  such  consignment,  any  privilege  which 
may  be  accorded  on  account  of  the.  shipment  being  in- 
tended for  the  use  of  any  one  of  the  United  States  Gov- 
ernment Departments,  either  directly  or  indirectly  through 
a  contractor  with  the  United  States  Government. 

4.  Agents  are  forbidden  to  sign  or  issue  bills  of  lading  or  receipts 

for  shipments  which  in  any  manner  conflict  with  any  of 

the  foregoing  provisions. 

W.  G.  McAdoo, 

Director  General  of  Railroads. 

(Violation  of  the  foregoing  order  is  punishable  by  fine  of  not  more 
than  $5,000.00  or  by  imprisonment  for  not  more  than  two  years  or 
by  both  such  fine  and  imprisonment.) 


319 

General  Order  No.  39. 

Washington,  August  12,  1918. 
The  sale  of  liquors  and  intoxicants  of  every  character   in  dining 
cars,  restaurants  and  railroad  stations  under  Federal  control  shall 
be  discontinued  immediately, 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  No.  40. 

Washington,  D.  C,  August  18,  1918. 
To  all  employees  in  the  railroad  service  of  tTie  United  States: 

Complaints  have  reached  me  from  time  to  time  that  employees  are 
not  treating  the  public  with  as  much  consideration  and  courtesy  under 
Government  control  of  the  railroads  as  under  private  control.  I  do 
not  know  how  much  courtesy  was  accorded  the  public  under  private 
control,  and  I  have  no  basis,  therefore,  for  accurate  comparison.  I 
hope,  however,  that  the  reports  of  discourtesy  under  Government  ad- 
ministration of  the  railroads  are  incorrect,  or  that  they  are  at  least 
confined  to  a  relatively  few  cases.  Whatever  may  be  the  merits  of 
these  complaints,  they  draw  attention  to  a  question  which  is  of  the 
utmost  importance  in  the  management  of  the  railroads. 

For  many  years  it  was  popularly  believed  that  "the  public  be 
damned"  policy  was  the  policy  of  the  railroads  under  private  control. 
Such  a  policy  is  indefensible  either  under  private  control  or  Govern- 
ment control.  It  would  be  particularly  indefensible  under  public 
control  when  railroad  employees  are  the  direct  servants  of  the  public. 
"The  public  be  damned"  policy  will  in  no  circumstances  be  tolerated 
on  the  railroads  under  Government  control.  Every  employee  of  the 
railroad  should  take  pride  in  serving  the  public  courteously  and  effi- 
ciently. Courtesy  costs  nothing  and  when  it  is  dispensed,  it  makes 
friends  of  the  public  and  adds  to  the  self-respect  of  the  employee. 

My  attention  has  also  been  called  to  the  fact  that  employees  have 
sometimes  offered  as  an  excuse  for  then  ovra  shortcomings,  or  as  a 
justification  for  delayed  trains  or  other  difficulties  the  statement  that 
"Uncle  Sam  is  running  the  railroads  now"  or  "These  are  McAdoo's 
orders,"  etc.  Nothing  could  be  more  reprehensible  than  statements  of 
tliis  character,  and  nothing  could  be  more  hurtful  to  the  success  of 
the  Railroad  Administration  or  to  the  welfare  of  railroad  employees 
themselves.  No  doubt,  those  who  have  made  them  have  done  so 
thoughtlessly  in  most  instances,  but  the  harm  is  just  as  great  if  a 
thing  of  this  sort  is  done  thoughtlessly  as  if  it  is  done  deliberately. 

There  are  man}-  people  who  for  partisan  or  selfish  purposes  wish 
Government  operation  of  the  railroads  to  be  a  failure.     Every  em- 


320 

2)loyee  who  is  discourteous  to  the  public  or  makes  excuses  or  state- 
ments of  the  kind  I  have  described  is  helping  these  partisan  or  selfish 
interests  to  discredit  Government  control  of  railroads. 

Recently  the  wages  of  railroad  employees  were  largely  increased, 
involving  an  addition  to  railroad  operating  expenses  of  more  than 
$475,000,000  per  annum.  In  order  to  meet  this  increase,  the  public 
has  been  called  upon  to  pay  largely  increased  passenger  and  freight 
rates.  The  people  have  accepted  this  new  burden  cheerfully  and 
patriotically.  The  least  that  every  employee  can  do  in  return  is  to 
serve  the  public  courteously,  faithfully  and  efficiently. 

A  great  responsibility  and  duty  rest  upon  the  railroad  employees 
of  the  United  States.  Upon  then*  loyalty,  efficiency  and  patriotism 
depends  in  large  part  America's  success  and  the  overthrow  of  the 
Kaiser  and  all  that  he  represents.  Let  us  not  fail  to  measure  up  to 
our  duty  and  to  the  just  demand  of  the  public  that  railroad  service 
shall  not  only  be  efficient,  but  that  it  shall  always  be  courteously 
administered. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  No.  41. 

-  Washington,  August  28,  1918. 

REGULATIONS      GOVERNING      DISPOSITION      OF      INTER-ROAD      FREIGHT 
CLAIMS    FOR    LOSS    AND    DAMAGE. 

The  following  regulations  will  govern  carriers  under  Federal  con- 
trol in  investigating,  paying,  and  accounting  for  freight  claims  for  loss 
and  damage  arising  during  Federal  control.  They  will  not  affect  the 
distribution  of  settlements  involving  any  road  not  under  Federal 
control  nor  the  distribution  of  claims  clearly  applicable  to  the 
period  prior  to  Federal  control. 

1.  Presentation      of     claims. — Effective      September    1st,    1918, 

claims  for  loss  of  or  damage  to  freight  shall,  except  as  modi- 
fied in  this  paragraph,  be  presented  to  and  settled  by  the 
destination  or  initial  carrier.  Claims  filed  with  an  inter- 
mediate carrier,  through  error,  shall  be  immediately  trans- 
mitted to  the  destination  carrier  and  claimant  so  advised. 
An  intermediate  carrier  clearly  at  fault  may  invito  and 
adjust  claims  direct.  Claims  for  fire  or  marine  losses  shall 
be  referred  for  adjustment  to  the  carrier  responsible,  and 
claimant  so  advised. 

2.  Papers  necessary   to   support   claims. — Claims   for  loss   of   or 

damage  to  freight  shall  be  made  on  the  standard  forms  ap- 
proved by  the  Interstate  Commerce  Commission.     In  the 


321 

case  of  loss  or  damage,  they  shall  be  supported  by  original 
bill  of  lading,  if  not  previously  surrendered  to  carrier, 
original  paid  freight  re(eii)t,  if  issued,  original  or  certified 
copy  of  invoice  of  value  and  all  obtainable  facts  in  proof  of 
such  loss  or  damage  and  the  value  thereof.  If  any  necessary 
document  is  lost  or  destroyed,  claimant  shall  file  a  bond  of 
indenmity  to  cover. 

3.  Method    of    adjustment. — The    foregoing    provisions    liaving 

been  complied  with,  loss  and  damage  claims  shall  be  adjusted 
with  the  claimant  in  accordance  with  the  established  legal 
hability,  bill  of  lading,  tariff  provisions,  and  Federal  regula- 
tions, by  the  carrier  to  which  presented  for  the  account  of 
and  without  reference  to  the  other  carriers  interested  in  the 
haul,  before  the  completion  of  other  investigations  necessary 
for  the  purpose  of  locating  responsibihty  or  apportioning 
the  amount  paid. 

4.  Car-seal  records. — Investigation   for  development  of   car-seal 

records  in  connection  with  the  apportionment  of  claims 
between  earners  shaU  be  discontinued. 

5.  Loss  or  damage  definitely  located. — Claims  for  loss  or  damage 

definitely  located,  the  legal  Hability  for  which  has  been  es- 
tabhshed  and  payment  made,  shall  be  charged  direct  to 
carrier  or  carriers  responsible  therefor. 

6.  Loss    or    damage    unlocated. — Claims    for    unlocated    loss    or 

damage,  thb  legal  liabihty  for  which  has  been  estabhshed 
and  payment  made,  shall  be  apportioned  to  interested 
carriers  on  mileage  basis,  with  minimum  of  ten  miles  for 
any  carrier. 

7.  Claims  involving  litigation. — Law   expenses,   including   court 

costs,  incurred  in  connection  with  the  defense  of  an  action 
where  recovery  is  had,  shall  be  apportioned  among  the 
carriers  involved  on  the  same  basis  as  the  claim.  In  the 
event  there  is  no  recovery,  the  law  expenses  shall  be  appor- 
tioned between  the  carriers  interested  on  a  mileage  basis, 
minimum  ten  miles  for  any  carrier,  and  subject  to  Para- 
graph 8,  Minimum  Debits. 

8.  Minimum  debits. — Except  as  provided  in  Paragraph  5  hereof, 

the  entire  amount  of  any  individual  loss  and  damage  claim 
shall  be  absorbed  by  the  setthng  carrier,  unless  the  amount 
chargeable  against  all  other  carriers  under  Federal  control 
in  interest  exceeds  five  doUars  ($5.00).  Proportions  less 
than  one  dollar  ($1.00)  against  any  one  carrier  shall,  however, 
be  absorbed  by  the  setthng  carrier. 

105889°— 19 21 


322 

9.  Settlement  hetween  carriers. — On  or  before  the  tenth  day 
of  each  month,  paymg  carrier  shall  render  a  statement  of 
amount  due  from  each  debtor  carrier  showing  thereon  the 
claim  number,  points  between  which  shipment  moved  over 
debtor  line,  waybill  reference  and  date,  commodity,  nature 
of  claim,  and  amount.  The  total  amount  of  such  statement 
shall  be  accepted  by  debtor  carrier  as  final,  except  if  it  be 
found  that  an  amount  was  included  in  statement  in  error, 
or  a  manifest  clerical  error,  adjustment  shall  be  made 
therefor  in  the  subsequent  statement,  as  prescribed  in 
General  Order  No.  30.  Manifest  errors  in  claim  payments 
should  be  brought  to  the  attention  of  the  debiting  carrier. 

10.  Monthly  statements. — Separate  monthly  statements  shall  be 

rendered  for  liabilities  which  were  incurred  prior  to  January 
1st,  1918,  and  for  liabilities  which  were  incurred  subsequent 
to  December  31st,  1917.  In  no  case  shall  a  single  statement 
include  both  prior  and  subsequent  liabilities.  Such  state- 
ments rendered  against  debit  carriers  should  be  forwarded 
through  the  proper  accounting  officer  of  the  carrier  by  whom 
they  are  prepared. 

11.  Method  of  imyment. — Loss  and  damage  freight  claims  shall  be 

audited  and  paid  on  regularly  audited  vouchers  in  same 
manner  as  other  operating  expenses  are  vouchered.  Such 
vouchers  shall  be  approved  for  audit  by  the  Freight  Claim 
Agent,  and  for  payment  by  or  under  the  direction  of  the 
officer  designated  to  approve  vouchers  for  payment.  Pro- 
vided, however,  loss  and  damage  freight  claims  may  be  paid 
by  drafts  drawn  upon  the  Federal  or  Local  Federal  Treas- 
urer having  jurisdiction  within  the  same  limitations  v/hich 
are  now  in  effect  and  authorized  by  the  officer  in  charge  of 
such  authorization. 

12.  Custody  of  claim  jmpers. — Claim  papers  shall  remain  in  posses- 

sion of  paymg  carrier,  except  that  where  individual  claims 
are  charged  in  full  to  another  carrier,  the  papers  may  be  sent 
to  such  carrier  upon  request.  When  documents  supporting 
either  paid  or  unpaid  claims  leave  possession  of  carrier,  they 
shall  be  plainly  stamped  with  carrier's  name  and  claim 
number. 

13.  Notations  of  exceptions  on  waybills. — Loss  or  damage  discovered 

at  any  point  in  transit  shall  be  specifically  noted  on  face  of 
waybill,  dated  and  signed  in  name  of  Agent,  Conductor,  or 
other  authorized  employee,  giving  name  of  carrier  respon- 
sible, or  point  where  discovered  if  responsibility  is  located. 

14.  Noting  exceptions  on  paid  freight  receipts. — Agents  deUvering 

freight  to  consignee,  when  shortage  or  damage  is  known  to 


323 

exist,  shall  make  specific  notation  of  extent  and  nature  of  the 
loss  or  damage  on  face  of  original  paid  freight  bill  and  sign 
and  date  such  notation  in  mk.  When  freight  bears  external 
evidence  of  pilfery  or  damage  at  tmie  of  delivery,  a  joint 
inspection  with  consignee  or  his  representative  shall,  when 
practicable,  be  made  at  the  delivery  station  and  receipt  taken 
in  accordance  therewith.  Claim  for  value  of  freight  check- 
ing short  at  destination  shall  not  be  paid  until  inquuy  has 
been  made  of  delivering  agent  and  consignee  to  ascertain  if 
shortage  has  since  arrived  or  reached  consignee  through  any 
source. 

15.  Delivery  of  astray  freight. — Astray  freight  (freight  marked  with 

name  and  address  of  consignee,  but  separated  from  regular 
revenue  waybill)  shall  be  immediately  forwarded  to  marked 
destination  on  standard  form  of  waybill,  without  charges 
(copy  by  mail  to  destination  agent) ,  and  such  waybill  shall 
bear  the  notation  "Astray  Freight — DeUver  only  on  pres- 
entation of  original  bill  of  lading  or  original  paid  freight 
receipt  or  other  proof  of  ownership."  Destination  agent 
receiving  astray  freight  shall  immediately  notify  consignee 
to  whom  marked,  and  if  regular  revenue  waybill  is  not  re- 
ceived, delivery  shall  be  made  on  presentation  of  proof  of 
ownership  prescribed  and  collection  of  tariff  charges  from 
point  where  shipment  originated.  Special  efforts  should 
be  made  to  establish  the  ownership  of  perishable  freight,  in 
order  to  insure  prompt  dehvery. 

16.  Freight    Claim  Association  Rules. — Rules   prescribed    by   the 

Freight  Claim  Association,  except  such  as  conflict  with  the 
regulations  herein  provided,  shall  govern  all  carriers  under 
Federal  control  until  otherwise  ordered. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  No.  42. 

[General  Order  No.  42  aud  Supplement  No.  1  thereto  are  superseded  by  General 

Order  No.  48.] 

Washington,  August  31,  1918. 
To  all  officers  and  employees  in  the  railroad  service  of  the  United  States : 
The  approaching  Federal  and  State  elections,  including  the 
primary  contests  connected  therewith,  make  it  both  timely  and 
necessary  that  the  attitude  of  the  Director  General  toward  political 
activity  on  the  part  of  officers  and  employees  in  the  railroad  service 
should  be  clearly  stated. 


324 

It  was  a  matter  of  common  report  that  railroads  under  private 
control  were  frequently  used  for  partisan  political  purposes:  that 
railroad  corporations  were  frequently  adjuncts  of  political  machines, 
and  that  even  sovereign  States  had  been  at  times  dominated  by 
them.  Contributions  to  campaign  funds  and  the  skiDful  and  effective 
coercion  of  employees  were  some  of  the  means  by  which  it  was 
believed  that  many  railroads  exerted  their  power  and  influence  in 
politics.  Scandals  resulted  from  such  practices,  the  public  interest 
was  prejudiced,  and  hostility  to  railroad  managements  was 
engendered. 

Now  that  the  Govermnent  controls  and  operates  the  railroads, 
there  is  no  selfish  or  private  interest  to  serve,  and  the  incentive  to 
political  activity  on  the  part  of  the  railroads  no  longer  exists. 

Under  Government  control  there  is  no  inducement  to  officers  and 
employees  to  engage  in  politics.  On  the  contrary,  they  owe  a  high 
duty  to  the  public  scrupulously  to  abstain  therefrom. 

It  is  therefore  announced  as  a  definite  policy  of  the  United  States 
Railroad  Administration  that  no  officer,  attorney,  or  employee  shall — 

1.  Hold    a   position    as    a   member   or   officer  of  any  political 

committee  or  organization  that  solicits  funds  for  political 
purposes. 

2.  Be   a   delegate    to    or   chairman   or   officer  of  any  political 

convention. 

3.  Solicit  or  receive  funds  for  any  political  purpose  or  contribute 

to  any  political  fund  collected  by  an  official  or  employee 
of  an}^  railroad  or  anj^  official  or  employee  of  the  United 
States  or  of  any  State. 

4.  Assume  the  conduct  of  any  political  campaign. 

5.  Attempt  to  coerce  or  intimidate  another  officer  or  employee 

in  the  exercise  of  his  right  of  suffrage.  Violation  of  this 
will  result  in  immediate  dismissal  from  the  service. 

6.  Become  a  candidate  for  any  political  office.     Membership  on 

a  local  school  or  park  board  will  not  be  construed  as  a 

political  office.     Those  desiring  to  run  for  poHtical  office  or 

to  manage  a  political  campaign  must  immediately  sever 

their  connection  with  the  United  States  Railroad  Service. 

I  am  sure  that  I  can  count  on  the  loyal  cooperation  of  all  officei-s, 

attorneys,  and  employees  engaged  in  the  operation  of  the  railroads 

under  Federal  control  to  carr}-  out  in  letter  and  spirit  the  policy 

here. announced.     This  policy  is  intended  to  secure  to  all  of  them 

freedom  of  action  in  the  exercise  of  their  individual  political  rights, 

and,  at  the  same  time,  to  prevent  any  form  of  lun-tful  or  pernicious 

political  activity. 

Let  us  demonstrate  to  the  American  people  that,  under  Federal 
control,  railroad  officers,  attorneys,  and  employees  can  not  be  made 


325 

a   part   of   any   political   machine   nor   be   used  for  any  organized 
partisan  or  selfish  purpose. 

Let  us  set  such  a  high  standard  of  public  duty  and  ser^^ce  that  it 

will  be  worthy  of  general  emulation. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Supplement  No.  1  to  General  Order  !N"o.  42. 

Washington,  D.  C.,  Septemler  14,  1918. 

(1)  It  appears  that  prior  to  the  issuance  of  General  Order  No.  42 
various  railroad  officers,  attorneys,  and  employees  were  elected  to 
poUtical  offices  and  are  now  holding  such  offices.  In  such  cases  no 
objection  will  be  raised  to  the  completion  of  such  terms  of  office. 
In  all  other  respects,  however,  General  Order  No.  42  will  apply  to 
such  oificei's,  attorneys,  and  employees. 

(2)  In  cases  where  prior  to  the  issuance  of  General  Order  No.  42 
railroad  officers,  attorneys,  and  employees  had  been  nominated  for 
pofitical  offices  or  had  become  candidates  locally  for  such  oflfices, 
they  may  continue  in  railroad  employment  until  the  election. 

(3)  The  position  of  notaries  public,  members  of  draft  boards, 
officers  of  public  libraries,  and  of  religious  and  eleemosynary  insti- 
tutions are  not  construed  as  pofitical  offices. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  No.  43. 

Washixgtox,  Septemher  o,  191S. 

Whereas  proceedings  in  garnishment,  attachment,  or  like  process 
by  which  it  is  sought  to  subject  or  attach  money  or  property  under 
Federal  control  or  derived  from  the  operation  of  carriers  imder  Fed- 
eral control  imder  the  act  of  Congress  of  March  21,  1918,  are  incon- 
sistent with  said  act  and  with  the  economical  and  efficient  adminis- 
tration of  Federal  control  thereunder ;  and 

Whereas  such  proceedings  are  frequently  commenced,  particularly 
for  the  garnishment  or  attachment  of  amounts  payable,  or  claimed 
to  be  payable,  as  wages  or  salaries  of  employees,  which  practice  is 
prejudicial  to  the  interests  of  the  Railroad  Administration  in  the 
operation  of  the  lines  and  systems  of  transportation  under  Federal 
control,  and  is  not  necessary  for  the  protection  of  the  rights  or  the 
just  interests  of  employees  or  others;  and 

Whereas  if  any  rules  or  regulations  l^ecome  necessary  to  require 
employees  to  provide  for  their  just  debts,  the  same  will  be  issued 
hereafter : 


326 

It  is  therefore  ordered  that  no  moneys  or  other  property 
under  Federal  control  or  derived  from  the  operation  of  carriers  while 
under  Federal  control  shall  be  subject  to  garnishment,  attachment, 
or  like  process  in  the  hands  of  such  carriers  or  any  of  them,  or  in 
the  hands  of  any  employee  or  officer  of  the  United  States  Railroad 

Administration. 

W.  G.  McAdoo, 
Direct'or  General  of  Railroads. 


General   Order   No.    44. 

Washington,  September  24,  1918. 

The  chief  accounting  officer  in  general  charge  of  one  or  more 
accomiting  organizations  of  the  Director  General  shall  be  designated 
' '  Federal  Auditor. ' '  The  chief  accounting  officer  in  charge  of  an 
accounting  organization  under  the  Federal  Auditor  shall  be  desig- 
nated "Auditor." 

Federal  Auditors  and  Auditors  ought  not  to  perform  any  services 

for  a  railroad  corporation,  except  in  special  cases  after  obtaining 

express  authoritv. 

W.  G.  McAdoo, 

Director  General  of  Railroads. 


General  Order  Xo.  45. 

Washington,  October  5,  1918. 

On  the  recommendation  of  the  Committee  on  Transportation  of 
the  American  Railway  Association  the  following  instructions,  in  con- 
nection with  changing  the  hands  of  the  clocks  and  watches  on  Sun- 
day, October  27,  1918,  at  2  a.  m.,  as  provided  in  the  Federal  law 
"To  Save  Daylight  and  to  Provide  Standard  Time  for  the  United 
States,"  are  hereby  issued : 

First:  At  2  a.  m.,  present  Standard  Time,  Sunday,  October  27, 
1918,  all  clocks  and  watches  in  train  dispatchers'  offices,  and  in  all 
other  offices  open  at  that  time,  must  be  turned  back  one  hour,  to 
indicate  1  a.  m. 

Employees  in  every  open  office  must,  as  soon  as  the  change  has 
been  made,  compare  time  with  the  train  dispatcher.  Clocks  and 
watches  in  all  offices  at  the  first  opening,  at  or  after  the  time  the 
change  becomes  effective,  must  be  turned  back  to  conform  to  the 
new  Standard  Time,  and  employees,  before  assuming  duties  in  such 
offices,  must,  after  the  change  is  made,  compare  time  with  the  train 
dispatcher. 

Second:  Each  railroad  will  issue  necessary  instructions  and  arrange 
for  such  supervision  and  check  of  the  watches  of  its  employees  as 


327 

to  insure  that  they  have  been  properly  changed  to  conform  to  the 
new  Standard  Time. 

Third :  Kegiilar  trains  must  be  held  to  conform  to  schedules  after 
change  in  time. 

Fourth:  Owing  to  the  varying  conditions  which  will  prevail  on 
the  railroads  of  the  United  States,  it  is  not  advisable  to  issue  a  uni- 
form rule  or  order  to  cover  other  details  involved  in  the  movement  of 
trains  at  the  period  the  change  in  Standard  Time  becomes  effec- 
tive. Therefore,  each  railroad  must  adopt  such  measures  as  may  be 
necessary  to  properly  safeguard  the  movement  of  its  trains  on  the 
road  at  the  time  of  the  change. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  No.  46. 

Washington,  Octoher  -5,  1918. 

The  records  of  the  Interstate  Commerce  Commission  and  the  re- 
ports of  their  inspectors  show  so  many  instances  of  violation  of 
Federal  statutes  for  the  promotion  of  safety  that  it  is  evident  that 
sufficient  attention  is  not  being  paid  to  paragraph  1  of  General  Order 
No.  8,  of  February  21,  1918,  reading  as  follows : 

'•All  acts  of  Congress  to  promote  the  safety  of  employees  and 
travelers  upon  the  railroads,  including  acts  requiring  investigation 
of  accidents  on  railroads,  and  orders  of  the  Interstate  Commerce 
Commission  made  in  accordance  therewith,  must  be  fully  complied 
with.  These  acts  and  orders  refer  to  hours  of  service,  safety  appli- 
ances, and  inspection." 

Enforcement  of  the  provisions  of  this  paragraph  will  be  placed 
under  the  direction  of  Assistant  Director  of  the  Division  of  Opera- 
tion, Frank  McManamy,  who  will  receive  reports  of  such  violations 
and  handle  them  either  with  the  Regional  Directors  or  direct,  if 
found  necessary. 

All  necessary  investigations  in  connection  therewith  will  be  con- 
ducted by  the  Assistant  Director  of  Operation  and  reports  of  such 
violations  will  be  sent  to  Regional  Directors  for  correction  and  not 
for  further  investigation. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  No.  47. 

Washington,  Octoher  5,  1918. 
repairs  to  equipment. 

The  following  regulations  shall  govern  the  determination  of  costs 
and  the  compilation  and  rendition  of  bills  bj'^  one  carrier  under  Fed- 


328 

eral  control  against  another  carrier  under  such  control  for  repairs 
to  equipment  actually  made  on  and  after  October  1,  1918.  Bills 
for  repairs  actually  made  prior  to  that  date  shall  be  compiled  and 
rendered  and  the  costs  for  such  repairs  shall  be  determined  as  here- 
tofore. 

REPAIRS  TO  CARS. 

(1)  The  cost  to  repair  freight  and  passenger  train  cars  and  work 
equipment  shall  be  borne  and  included  in  the  operating  expenses  of 
the  carrier  which,  under  the  rules  and  practices,  applicable  at  the 
time  repairs  are  made,  may  be  responsible  for  such  repairs. 

(2)  Tlie  cost  of  repairs  made  by  any  carrier  to  its  own  cars  or  to 
cars  of  another  carrier  for  which  it  the  repairing  carrier  is  respon- 
sible shall  be  based  upon  actual  applied  material  and  labor  costs  plus 
a  proper  proportion  of  '•  shop  expenses,"  as  prescribed  by  the  rules 
of  the  Interstate  Commerce  Commission  or  which  may  hereafter  be 
prescribed. 

(3)  If  the  cost  of  repairs  made  to  cars  by  one  carrier  be  chargeable 
to  another  carrier  such  costs  shall  be  based  on  the  rules  prescribed 
by  the  Master  Car  Builders'  Association  which  were  applicable  at  the 
time  such  repairs  were  made.  Details  in  support  of  such  repair  costs 
shall  be  prepared  as  heretofore. 

(4)  There  shall  be  compiled  monthly,  from  the  detail  record  re- 
ferred to  in  the  preceding  paragi-aph,  one  statement  against  each 
carrier  under  Federal  control  for  the  repair  costs  chargeable  to  it. 
Such  monthly  statements  sliall  be  made  in  duplicate  and  shall  show 
separately  for  freight  train  cars,  passenger  train  cars,  and  work 
equipment : 

(a)  Total  cars  repaired. 

(&)  Total  labor  costs  including  shop  expense  costs. 

(c)  Total  material  costs  including  handling  and  other  costs  charge- 
able to  material. 

(d)  Added  per  cent. 

(e)  Total  costs. 

(5)  The  originals  of  such  statements  shall  be  rendered  to  and  ac- 
cepted by  debtor  carriers  as  rendered,  in  accordance  with  the  provi- 
sions  of  General   Order  No.   20. 

(6)  The  duplicates  of  such  statements  shall  be  attached  to  the 
detail  data  from  which  they  are  made  and  retained  by  the  carrier 
making  the  repairs. 

REPAIRS    TO    L0C0:M0TIVES. 

(7)  The  provisions  of  paragTaphs  (1)  and  (2)  of  this  order  with 
respect  to  repairs  of  cars  shall  in  like  manner  apply  to  repairs  of 
locomotives. 


329 

(8)  The  costs  for  repairing  locomotives  of  one  carrier  under  Fed- 
eral control  or  for  account  of  another  carrier  under  such  control 
shall  be  determined  in  the  following  manner: 

(«.)  To  the  cost  of  all  applied  material  there  shall  be  atlded  fifteen 
(15)   per  cent  to  cover  cost  of  handling. 

(b)  To  the  cost  of  all  applied  labor  there  shall  l)e  added  ten  (10) 
per  cent  to  cover  accounting  and  other  incidental  costs. 

{c)   Proportion  of  shop  expense  costs. 

{d)  The  aggregate  of  all  such  costs  shall  re])resent  tlie  amount  to 
he  charged   for  the  repairs. 

(9)  Details  comprising  such  repair  costs  shall  be  compiled  and 
kept  by  the  repairing  earner,  from  which  monthly  statements  in 
duplicate  shall  be  prepared  against  the  carrier  responsible  for  such 
costs.  Such  statements  shall  show  the  repair  costs  for  each  indi- 
vidual locomotive  stated  in  the  following  detail : 

{a)  Total  labor  costs. 

(b)  Total  material  costs. 

(c)  Shop  costs. 

{d)  Added  per  cent  for  Jabor. 
(e)   Added  per  cent  for  material. 
(/)   Total  cost. 

(10)  The  originals  of  such  statements  shall  be  rendered  to  and 
accepted  by  debtor  carriers  as  rendered,  in  accordance  with  the  pro- 
visions of  General  Order  No.  20.  Duplicates  shall  ])e  attached  to  the 
detail  data  from  which  they  are  made  and  retained  by  the  carrier 
making  the  repairs. 

ADDITIONS   AND  BETTERMENTS   COSTS. 

(11)  If  additions  and  betterments  be  made  by  one  carrier  under 
Federal  control  to  the  equipment  of  another  carrier  under  such  con- 
trol, the  owning  carrier  shall  be  billed  by  the  carrier  making  the 
improvements  for  the  costs  thereof.  Such  bill  shall  show  the  kind 
and  class  of  equipment,  the  initial  and  number  thereof,  as  well  as 
such  details  as  to  specifications  and  costs  as  may  be  necessary  to 
enable  the  owning  carrier  to  make  proper  record  of  the  improvement. 
Bills  for  such  costs  shall  be  subject  to  check  and  verification  by  the 
oAvning  carrier.  Bills  for  additions  and  betterments  costs  shall  not 
be  included  with  bills  for  repair  costs. 

(12)  If,  in  repairing  a  unit  of  equipment,  a  change  in  the  standard 
established  by  the  owner  be  made  such  as  substitution  of  parts, 
advice  of  such  change  shall  be  given  the  owner. 

EQUIPMENT    DESTROYED. 

(13)  If  a  unit  of  equipment  of  one  carrier  under  Federal  control  be 
destroyed  on  the  line  of  another  carrier  under  such  control,  advice 


330 

of  such  destruction  shall  be  promptly  given  to  the  owning  carrier  by 
the  carrier  on  whose  line  the  unit  was  destroyed.  Upon  receipt  of 
such  advice  the  owning  carrier  shall  bill  the  destroying  carrier  there- 
for, in  accordance  with  Master  Car  Builders'  Association  rules  as 
now  in  effect,  or  as  may  hereafter  be  prescribed. 

MATERIALS    FURNISHED    BY    ONE    CARRIER    TO    ANOTHER. 

(14)  Material  furnished  by  one  carrier  under  Federal  control  to 
another  carrier  under  such  control  for  use  in  repairing  or  improving 
the  equipment  of  the  owning  carrier  shall  be  billed  by  the  carrier 
furnishing  it  and  paid  for  by  the  repairing  carrier  at  costs  at  which 
the  material  is  carried  in  the  accounts  of  the  owning  carrier  plus 
actual  out-of-pocket  handling  or  shipping  costs.  Such  material 
shall  be  taken  into  the  accounts  of  the  carrier  to  which  it  is  furnished 
at  such  billed  costs,  to  which  shall  be  added  freight  and  other  han- 
dling costs  actually  incurred  by  the  receiving  carrier.  The  costs  thus 
determined  shall  be  used  as  a  basis  for  determining  the  cost  of  ma- 
terial used  in  such  repairs  or  improvements. 

(15)  Bills  for  material  furnished  as  prescribed  in  the  preceding 
paragraph  shall  be  made  in  detail.  They  shall  be  subject  to  check 
and  reclamation  or  rejection  by  the  debtor  carrier  in  respect  to 
damage  or  shortage. 

(16)  Bills  for  repairs  to  equipment  for  which  private  owners  or 
carriers  not  under  Federal  control  (including  Canadian  and  Mexican 
railroads)  are  responsible  shall,  unless  and  until  otherwise  ordered, 
be  made  and  rendered  as  heretofore  in  accordance  with  Master  Car 
Builders'  rules  applicable  at  the  time  such  repairs  are  made. 

(17)  Bills  for  repairs  to  equipment  made  by  carriers  not  under 
Federal  control  against  carriers  under  such  control  shall  be  tested, 
verified,  and  paid  by  the  carrier  responsible  for  such  repairs  as 
heretofore. 

(18)  The  provisions  of  this  order  in  respect  to  the  rendition  of 
monthly  statements  shall  take  effect  on  October  1,  1918,  and  shall 
apply  only  to  repairs  actually  made  on  and  after  that  date.  Bills  for 
repairs  made  prior  to  that  date  shall  be  rendered  as  heretofore. 

W.  G.  MoAdoo, 
Director  General  of  Railroads. 


General  Order  No.  -18. 

Wa.shington.  Octoher  ^2,  1918. 
This  Order  is  issued  in  lieu  of  and  as  a  substitute  for  General 
Ordei-  No.  42  and  Supplement  No.  1  thereto. 


331 

The  issuance  of  General  Order  No.  42  was  for  the  purpose  of  ex- 
tending to  officers,  attorneys  and  emplo3^ees  in  the  Railroad  Service 
of  the  United  States  substantially  the  same  regulations  as  to  politi- 
cal activity  vrhich  have  been  applied  for  many  years  through  Ci\  il 
Service  Laws  and  Executive  and  Departmental  Orders  and  Regula- 
tions to  other  employees  of  the  United  States.  These  laws,  orders 
and  regulations  conform  to  a  wise  policy  which  has  long  had  the 
support  of  the  people  of  the  United  States  regardless  of  political 
parties.  Since  the  Government  has  taken  control  of  the  railroads  and 
their  former  officers,  attorneys  and  employees  have  become  public 
servants,  it  is  necessary  that  the  same  policy  as  to  political  activit}^ 
be  extended  to  them  as  to  other  employees  of  the  United  States.  As 
employees  of  the  Government,  they  cannot  be  properly  exempted 
from  the  policy  applied  to  other  Government  employees. 

It  has  developed,  however,  since  General  Order  No.  42  was  issued, 
that  there  are  many  communities  in  the  United  States  which  are 
^'omposed  largely,  and  in  some  respects  almost  wholly,  of  railroad 
employees  and  their  families,  and  that  the  proper  civil  administra- 
tion of  such  communities  makes  its  necessary  that  railroad  employees 
should  hold  municipal  offices.  It  is  clear  that  in  such  cases  excep- 
tions should  be  made.  Such  exceptions  have  been  made  by  the  Gov- 
ernment in  other  cases  (such  as  Navy  Yards  in  certain  localities) 
where  the  population  consisted  wholly  or  in  large  part  of  Gov- 
ernment employees  and  where  it  was  necessary  for  proper  adminis- 
tration of  civil  affairs  such  Government  employees  should  hold 
local  political  offices. 

It  has,  therefore,  been  determined  to  permit  railroad  employees  to 
hold  municipal  offices  in  the  communities  in  which  they  live,  provided 
they  do  not  neglect  their  railroad  duties  as  a  result  thereof,  and  also 
to  limit  Section  (2)  to  a  prohibition  against  railroad  employees  act- 
ing as  chairmen  of  political  conventions  or  using  their  positions  in 
the  Railroad  Service  of  the  United  States  to  bring  about  their  selec- 
tion as  delegates  to  political  conventions,  in  order  to  harmonize  said 
Section  (2)  with  existing  Civil  Service  Rules  and  Departmental 
Regulations. 

It  is.  therefore,  ordered  that  no  officer,  attorney  or  employee  shall — 

1.  Hold  a  position  as  a  member  or  officer  of  any  political  com- 

mittee or  organization  that  solicits  funds  for  political  pur- 
poses. 

2.  Act  as  chairman  of  a  political  convention  or  use  his  position 

in  the  Railroad  Service  of  the  United  States  to  bring  about 
his  selection  as  a  delegate  to  political  conventions. 

3.  Solicit  or  receive  funds  for  any  political  purpose  or  contribute 

to  any  political  fund  collected  by  an  official  or  employee  of 


332 

any  railroad  or  an}'  official  or  emploj^ee  of  the  United 
States  or  any  State. 

4,  Assume  the  conduct  of  any  political  campaign. 

5.  Attempt  to  coerce  or  intimidate  another  officer  or  employee  in 

the  exercise  of  his  right  of  suffrage.  Violation  of  this  will 
result  in  immediate  dismissal  from  the  service. 
G.  Neglect  his  railroad  duties  to  engage  in  politics  or  use  his 
position  in  the  Railroad  Service  of  the  United  States  to 
interfere  with  an  election.  An  employee  has  the  right  to 
vote  as  he  pleases,  and  to  exercise  his  civil  rights  free  from 
interference  or  dictation  by  any  fellow  employee  or  by  any 
superior  or  by  any  other  person.  Railroad  employees  may 
become  candidates  for  and  accept  election  to  municipal 
offices  W'here  such  action  will  not  involve  neglect  on  their 
part  of  their  railroad  duties,  but  candidacy  for  a  nomina- 
tion or  for  election  to  other  political  office  or  the  holding 
of  such  office  is  not  permissible.  The  positions  of  notaries 
public,  members  of  draft  boards,  officers  of  public  libraries, 
members  of  school  or  park  boards,  and  officers  of  religious 
and  eleemosynary  institutions  are  not  constructed  as  political 
offices. 

7.  In  all  cases  where  railroad  officers,  attorneys  and  employees 

were  elected  to  political  offices  prior  to  the  issuance  of 
General  Order  No.  42,  August  31,  1918.  they  will  be  per- 
mitted to  complete  their  terms  of  office  so  long  as  it  does 
not  interfere  with  the  performance  of  their  railroad  duties. 
After  the  completion  of  said  terms  of  office,  they  will  be 
governed  by  the  provisions  of  this  Order. 

8.  In  all  cases  where  railroad  officers,  attorneys  and  employees 

Avere  nominated  for  political  offices  and  had  become  candi- 
dates therefor  prior  to  the  issuance  of  General  Order  No.  42, 
August  31,  1918,  they  will  be  permitted  to  hold  and  com- 
plete the  terms  of  office  to  whicli  they  may  be  elected  at  the 
general  election  to  be  held  November,  1918,  to  the  extent 
that  the  holding  of  such  offices  shall  not  interfere  with  the 
perfoi-mance  of  their  railroad  duties.    After  the  completion 
of  such  tei-ms  of  office,  they  shall  be  governed  by  the  pro- 
visions  of  this  Order. 
Railroad  men  have  given  ample  proof  of  their  loyalty  to  their 
Goveniment.    I  am  confident  that  they  will  gladly  and  patriotically 
acc(>pt  now  those  reasonable  Govemmental  Regulations  concerning 
jjolitical  activity  which  their  welfare  and  America's  cause  demand. 
Thev  are  the  same  regulations  in  their  general  scope  and  application 


333 

as  all  other  Government  employees  have  lived  under  for  many  years 
without  the  loss  of  any  essential  rights  and  with  added  dignity  to 
their  citizenship. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 
Approved  : 

AVooDROW  Wilson. 


General.  Order  Xo.  40. 

Washington,  Octoher  23,  1918. 

There  are  presented  herewith  and  made  a  part  of  this  General 
Order,  samples  of  standard  forms  of  monthly  ticket  and  excess 
baggage  reports,  upon  which  all  accounting  transactions  with  re- 
spect to  the  sale  of  passage  and  excess  baggage  tickets,  shall  be  re- 
ported by  agents  to  the  Accounting  officers  having  jurisdiction,  also 
a  form  for  reporting  Transportation  Requests  exchanged  for  tickets. 

All  tickets  sold,  or  exchanged,  on  and  after  November  1,  1918, 
shall  be  reported  on  the  appropriate  forms  in  such  manner  as  may  be 
directed  by  the  Director  of  Public  Service  and  Accounting. 

The  standard  forms  herein  prescribed  are  reports  of : — 
Local  Ticket  Sales 
Interline  Ticket  Sales 
Local  Excess  Baggage  Collections 
Interline  Excess  Baggage  Collections 
Transportation  Requests  exchanged  for  tickets. 

For  use  at  smaller  stations,  half  size  report  forms  for  Interline 
Ticket  Sales,  and  Interline  Excess  Baggage  Collections  may  be  used. 

The  printing  and  ruling  on  the  report  foniis  shall  be  a-  facsimile 
of  the  samples  herewith  presented ;  provided,  however,  the  name  of 
the  individual  carrier  shall  be  substituted  for  the  designation  "  North 
and  South  Railroad  "  as  shown  on  the  sample  forms.  When  advan- 
tageous to  do  so,  the  name  of  the  carrier  may  be  omitted.  Provided 
further  that  each  carrier  may  print  destinations,  rates,  and  other 
similar  data  calculated  to  aid  in  compilation  and  accounting. 

With  the  inauguration  of  these  standard  forms  of  monthly  reports, 
all  other  reports  of  such  transactions  shall  be  discontinued,  provided 
that  special  periodical  reports  of  tickets  furnished  Governmental 
Departments,  or  other  reports  of  a  special  nature  necessary  for  ac- 
counting purposes,  may  be  compiled  and  furnished. 

The  monthly  reports  herein  prescribed  shall  be  made  in  duplicate, 
either  by  carbon  or  press  copy  process ;  originals  shall  be  forwarded 
to  the  proper  accounting  officer  having  jurisdiction ;  duplicates  shall 
be  retained  by  agents. 


334 

Distinctive  colors  shall  be  used  for  the  two  classes  of  reports;  that 
is,  forms  for  reporting  local  ticket  sales  and  local  excess  baggage 
collections  shall  be  printed  on  paper  of  light  canary  color,  and  forms 
for  reporting  interline  ticket  sales  and  interline  excess  baggage  col- 
lections shall  be  printed  on  white  paper,  provided,  however,  that 
the  color  scheme  may  be  disregarded  in  connection  with  the  dupli- 
cate forms  to  be  retained  by  agents. 

These  reports  shall  be  introduced  at  the  Consolidated  Ticket 
Offices  on  date  named,  and  at  all  other  agencies  as  soon  as  stock  of 
forms  at  present  in  use  becomes  exhausted,  but  in  any  event  not 
later  than  January  1,  1919, 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  No.  50. 

Washixgtox,  October  2S,  1918. 

Whereas  by  the  Proclamations  dated  December  26,  1917,  and 
April  11,  1918,  the  President  took  possession  and  assumed  control 
of  systems  of  transportation  and  the  appurtenances  thereof,  and 
appointed  the  undersigned,  William  G.  McAdoo,  Director  General  of 
Kailroads,  and  provided  in  and  by  said  Proclamations  that  "  until 
and  except  so  far  as  said  Director  shall  from  time  to  time  otherwise 
by  general  or  special  orders  determine,  such  systems  of  transporta- 
tion shall  remain  subject  to  all  existing  statutes  and  orders  of  the 
Interstate  Commerce  Commission  and  to  all  statutes  *  *  *  but 
any  orders,  general  or  special,  hereafter  made  by  said  Director  shall 
have  paramount  authority  and  be  obeyed  as  such" ;  and 

Whereas  the  Act  of  Congress,  called  the  Federal  Control  Act, 
approved  March  21,  1918,  provided  that  "  carriers  while  under  Fed- 
eral control  shall  be  subject  to  all  laws  and  liabilities  as  common 
carriers,  whether  arising  under  State  or  Federal  laws  or  at  common 
law,  except  in  so  far  as  may  be  inconsistent  with  the  provisions  of 
this  Act  or  any  other  Act  applicable  to  such  Federal  control,  or  with 
any  order  of  the  President";  and 

Whereas  since  the  Director  General  assumed  control  of  said  sys- 
tems of  transportation,  suits  are  being  brought  and  judgments  and 
decrees  rendered  against  carrier  corporations  on  matters  based  on 
causes  of  action  arising  during  Federal  control  for  which  the  said 
carrier  corporations  are  not  responsible,  and  it  is  right  and  proper 
that  the  actions,  suits  and  proceedings  hereinafter  referred  to,  based 
on  causes  of  action  arising  during  or  out  of  Federal  control  should 
be  brought  directly  against  the  said  Director  General  of  Kailroads 
and  not  against  said  corporations : 


Form  No 

(To  be  Inserted  br  Individual  Carrier) 

REPORT  OF  LOCAL  TICKET  SALEI 

At 


Sheet  No 

of — Sheets 

NORTH  AND  SOUTH  RAILEOAD 

Agent 


§      27 

03 

B     28 


Remarks  and 
Authorities 


)estination 


I't'n 


Xum- 
bcr 
Void 


4-» 


«-f^ 


15 


Fare 


16 


Amount 


17 


Each  Individual  Sheet  must  bear  a  Separat  irm 

Standard  size,  14  by  17  inches.    Figures  in  c 
Horizontal  faint-line  ruling  to  be  one-fourth 

105889°— 19.     (To  face  page  3.34.) 


i"- 


1 

2 
3 
4 
5 
6 
7 
8 
9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 


No.  AC-.jOl,  approved  October  23, 1918. 

C.  A.  Peodty. 


Each  Individual  Sbcct  must  bear  a  Separate  T 
Staodard  siw,  14  by  17  inches.    Figures  in  cen' 


Fpnn  Nq.  AC-SOl,  approved  October  93,  It 


n 


Form  No 

(To  be  Inserted  by  Individual  Carrier) 

REPORT  OF  INTERLINE  TICKET 
At 


-2"- 


Remarks  and 

Authorities 


Routes 


Sheet  No 

of Sheets 

i^OfttH  AND  SOUTH  RAILROAD 

Agent 


Class 
10 


One 
Way 


<-J' 


R.T 


<-J" 


Fare 
11 


Amount 
12 


<— J" 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 


Each  Individual  Sheet  must  bear  a  Separat^ 

Standard  size,  14  by  17  inches.    Fierures  in  c^  No.  AC-502,  approved  October  23,  1918. 
Horizontal  faint-line  ruling  to  be  one-fourth :  C.  A.  Proutt. 

105889°— 19.     (To  face  page  334.)    N^ 


18  Of  Skeleton  Tickets  and 


This  Space  Used  in  Auditor's  Office  for  Binding 

Form  No 

(To  be  inserted  by  indi%-idual  carrier) 

UNITED  STATES  RAILROAD  ADMINISTRATION 

W.  G.  McAdoo,  Director  General  of  Railroads 

NORTH  AXD  SOUTH  EAILKOAD 

REPORT  OF  LOCAL  EXCESS  BAGGAGE   COLLECTIONS 


Sheet  No 

of Sheets 


At. 


..( )    Month  of 191 

(Station  No.) 

Agent 


Check  No. 


Destination 


Total  this  Sheet 


State 


Dogs,  Baby  Carriages,  Bi- 
cycles and  Articles 
Charged  for  at  Other 
Than  Excess  Baggage 
Rates 


Descrip- 
tion 


Rate 

per  100 

Lbs. 


Amount 
6 


Excess  Baggage  Collections 


Excess 
Weight 


-¥'- 


Rate 

per  100 

Lbs. 


Amount 
9 


Each  individual  sheet  must  bear  a  separate  total  and  a  recapitulation  made  on  last  sheet 

Form  No.  AC-503,  approved  October  23,  1918. 
C.  A.  Prouty. 

Standard  size,  8i  by  14  inches.    Figures  in  center  of  columns  give  the  approximate  width  of  column  in  inches 
horizontal  lamt-hne  ruling  to  be  one-fourth  inch  apart.    Every  fifth  faint  line  and  line  above  total  to  be  heavy 

105889°— 19.    (To  face  page  334.)    No.  3 


Form  No 

(To  be  inserted 


REPORT  OF 


Form 


-11"- 


-*"- 


Each  Individual  1 


Standard  size,  11| 
Horizontal  fatnt-l 

105889°—] 


(To  be  insCTtcd  by  Indlviduol  Carriei) 
BBPORT  OF  INTEIILINE  EXCES! 


UNTTRD  STATES 


.. 


1,  llJbyUinchcs.    FlgHresino 


lumos  giTo  tbe  oproxlmate  n 


FonD  No.  AC-504,  approved  Ootobu  X 


r 


UNITED  STATES  RAILROAD  ADMINISTRATION  Sheet  No. 

W.  G.  McAdoo,  Director  General  of  Railroads 

NORTH  AND  SOUTH  KAttROAD 

REPORT  OF  TRANSPORTATION  REQUESTS  EXCHANGED  FOR  TICKETS 

( ),  for ,191.... 

(Station  No.) 


FormNo 

(To  be  inserted  by 
individual  carrier) 


At. 


.Agent 


Description  of  request 


Description  of  ticket 


Number 


< i"- 


Department  Issuing  the 
Request 


Destination 


Form 


Number 


Fare 


i"~- 


Amount 


Form  No.  AC-505,  approved  October  23, 1918. 

C.  A.  Proutt. 

Standard  size,  8^  by  14  inches.     Figures  in  center  of  columns  give  the  approximate  width  of  column  in  inches 
Horizontal  faint-line  ruling  tc  be  one-fourth  inch  apart.    Every  fifth  faint  line  and  line  above  total  to  be  heavy 

105889°— 19.     (To  face  page  334.)    No.  5 


335 

It  is  therefore  ordere^.  that  actions  at  law,  suits  in  equity,  and 
proceedings  in  admiralty  hereafter  brought  in  any  court  based  on 
contract,  binding  upon  the  Director  General  of  Railroads,  claim 
for  death  or  injury  to  person,  or  for  loss  and  damage  to  property, 
arising  since  December  31,  1917,  and  growing  out  of  the  possession, 
use,  control  or  operation  of  anj'^  railroad  or  sj'stem  of  transportation 
by  the  Director  General  of  Railroads,  which  action,  suit,  or  proceed- 
ing but  for  Federal  control  might  have  been  brought  against  the 
carrier  company,  shall  be  brought  against  William  G,.McAdoo,  Di- 
rector General  of  Railroads,  and  not  otherwise;  provided,  however, 
that  this  order  shall  not  apply  to  actions,  suits,  or  proceedings  for 
the  recovei*y  of  fines,  penalties,  and  forfeitures. 

Subject  to  the  provisions  of  General  Orders  numbered  18,  18-A 
and  26,  heretofore  issued  by  the  Director  General  of  Railroads, 
service  of  process  in  any  such  action,  suit  or  proceeding  may  be  made 
upon  operating  officials  operating  for  the  Director  General  of  Rail- 
roads, the  railroad  or  other  carrier  in  respect  of  which  the  cause  of 
action  arises  in  the  same  way  as  service  was  heretofore  made  u^^on 
like  operating  officials  for  such  railroad  or  other  carrier  company. 

The  pleadings  in  all  such  actions  at  law,  suits  in  equity,  or  pro- 
ceedings in  admiralty,  now  pending  against  any  carrier  company  for 
a  cause  of  action  arising  since  December  31,  1917,  based  upon  a  cause 
of  action  arising  from  or  out  of  the  operation  of  any  railroad  or  other 
carrier,  may  on  application  be  amended  by  substituting  the  Director 
General  of  Railroads  for  the  carrier  company  as  party  defendant  and 
dismissing  the  company  therefrom. 

The  undei^igned  Director  General  of  Railroads  is  acting  herein  by 
authority  of  the  President  for  and  on  behalf  of  the  United  States  of 
America,  therefore  no  supersedeas  bond  or  other  security  shall  be 
required  of  the  Director  General  of  Railroads  in  any  court  for  the 
taking  of  or  in  connection  with  an  appeal,  writ  of  error,  supersedeas, 
or  other  process  in  law,  equity,  or  in  admiralty,  as  a  condition  prece- 
dent to  the  prosecution  of  any  such  appeal,  writ  of  error,  supersedeas, 
or  other  process,  or  otherwise  in  respect  of  any  such  cause  of  action 
or  proceeding. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  No.  51. 

Washington,  Noverriber  i,  1918. 
The  majority  of  railroads  under  Federal  control  have  already  made 
announcement  with  respect  to  the  preservation  of  seniority  rights  for 
employees  who  have  entered  the  military  service  of  the  Army  and 


336 

xsTavy,  and  have  indicated  that  so  far  as  practicable,  preference  in 
reemployment  or  reinstatement  would  be  given  to  soldiers  and  sailors 
Avhen  mustered  out  of  the  service. 

(1)  In  order  that  as  nearly  as  practicable  there  shall  be  a  uniform 
treatment  of  this  matter,  the  following  general  principles  will  govern : 

(a)  In  the  case  of  an  employee  having  established  seniority 
rights,  so  far  as  practicable,  and  where  the  employee  is  physically 
qualified,  he  will  be  restored  to  such  seniority  rights. 

(6)  In  the  case  of  employees  who  do  not  have  seniority  rights 
under  existing  practices,  a  consistent  effort  will  be  made  to  pro- 
vide employment  for  them  when  mustered  out  of  military  service. 

(2)  Upon  railroads  where  the  assurances  given  on  this  subject  have 
been  more  specific  than  the  provisions  of  paragraph  (1)  hereof,  such 
assurances  shall  be  observed. 

W.  G.  McAdoo, 
Director  (reneral  of  Railroads. 


General  Order  No.  52. 

Washington,  yocemher  8,  1918. 
It  is  hereby  ordered  that  the  following  rules  and  regulations  shall 
be  observed  and  shall  govern  the  recording  of  and  accounting  for  all 
transactions  of  the  hereinbelow  described  Carriers  by  AVater  under 
Federal  control,  which  arise  during  such  control. 

1.  For  accounting  purposes,  Federal  control  of  Carriers  by  Water, 
owned,  controlled  or  operated  by  Railroads  began  as  of  12 :01  a.  m. 
January  1,  1918,  and  of  Carriers  by  Water  specified  in  General 
Order  #19,  not  so  owned,  controlled  or  operated  as  of  12 :01  a.  m. 
April  13,  1918,  Immediate  steps  shall  be  taken  by  each  Carrier  by 
Water  subject  thereto,  to  open  new  and  separate  books  of  accounts 
such  as  cash  books,  general  and  subsidiary  ledgers  and  journals,  and 
all  supporting  and  subsidiary  books  and  records  incident  thereto, 
upon  which  shall  be  recorded  all  transactions  which  arise  under 
and  are  incident  to  Federal  control,  on  and  after  the  dates  above 
mentioned.  Such  books  shall  be  designated  and  arc  hereinafter  re- 
ferred to  as  Federal  books.  Reference  made  hereinafter  to  "  De- 
cember 31,  1917  or  April  12,  1918,"  is  intended  to  designate  the  date 
corporate  control  terminated  and  the  appropriate  date  applying 
to  the  carrier  by  Avater  at  interest  shall  be  used  in  each  case.  The 
reference  hereinafter  to  "  January  1,  1918  or  April  13,  1918 "  is 
intended  to  indicate  the  date  when  Federal  control  began  and  the 
ai^propriate  date  shall  be  used  in  each  such  case  by  the  carrier  by 
water  at  interest. 

2.  The  totals  of  the  Accounts.  Casli  and  sucli  working  funds  as 
may  be  in  the  hands  of  agents,  appearing  on  the  Corporation  books 


337 

at  the  end  of  corporate  control,  that  is,  as  of  December  31,  1917  or 
April  12,  1918,  as  the  case  may  be,  shall  be  transferred  to  the  Fed- 
eral books  debited  to  the  accounts  of  the  same  titles  and  credited  to 
a  Deferred  Liability  Account  styled  "  (name  of  corporation)  cash, 
(December  31,  1917  or  April  12,  1918)."  On  the  Corporate  books, 
the  amount  of  such  balance  should  be  transferred  to  a  Deferred 
Asset  Account  styled  "  U.  S.  Government-Cash  (December  31,  1917 
or  April  12,  1918)."  All  cash  transactions  subsequent  to  (Decem- 
ber 31,  1917  or  April  12,  1918)  relating  to  operations  prior  or  sub- 
sequent thereto,  shall  be  recorded  in  the  Federal  cash  book  opened 
as  of  (January  1,  1918  or  April  13,  1918). 

3.  The  total  of  Accounts  Net  Balance  Due  from  Agents,  including 
working  funds  in  their  hands.  Pursers  and  Stewards  appearing  on 
the  Corporation's  books  as  of  (December  31,  1917  or  April  12,  1918) 
shall  be  transferred  to  the  Federal  books,  debited  to  an  account  of 
the  same  title  and  credited  to  a  Deferred  Liability  Account  styled 
''(name  of  Corporation)  Agents,  Pursers  and  Stewards,  (December 
31,  1917  or  April  12,  1918)."  On  the  Corporation  books  the  amount 
of  such  balance  should  be  transferred  to  a  Deferred  Asset  Account 
styled  "U.  S.  Government-Agents,  Pursers  and  Stewards  Balances, 
(December  31,  1917  or  April  12,  1918)." 

4.  The  total  of  the  several  accounts  appearing  on  the  Corporation 
books  under  caption  "Materials  and  Supplies,"  as  of  (December  31, 
1917  or  April  12,  1918),  shall  be  transferred  to  the  Federal  books, 
debited  to  accounts  of  the  same  titles  and  credited  to  a  Deferred 
Liability  Accoimt  styled  "  (name  of  corporation)  Materials  and 
Supplies,  (December  31, 1917,  or  April  12, 1918) ."  On  the  Corporate 
books  the  amount  of  such  balance  should  be  transferred  to  a  Deferred 
Asset  Account  styled  "  U.  S.  Government — Materials  and  Supplies, 
(Dec.  31,  1917  or  April  12,  1918)."' 

5.  In  addition  to  the  assets  above  specified,  there  shall  likewise  be 
transferred  to  the  Federal  books  and  similarly  recorded  therein,  such 
other  working  assets  appearing  on  the  books  of  the  corporation  as  of 
(December  31,  1917  or  April  12,  1918),  as  may  be  mutually  agreed 
upon  between  the  Director  General  of  Railroads  and  the  Corporation. 

6.  There  shall  be  currently  entered  upon  such  Federal  books,  in 
the  manner  and  under  the  rules  and  regulations  prescribed  by  the 
Interstate  Commerce  Commission,  or  which  may  hereafter  be  pre- 
scribed, all  transactions  involving  Revenues,  Expenses,  Taxes, 
Rentals  and  such  other  items  as  are  used  in  determining  the  Water 
Line  operating  income  under  Federal  control.  Such  entries  shall 
include  corresponding  Assets  and  Liabilities  and  the  cash  settlement 
thereof,  also  all  transactions  involving  "Materials  and  Supplies 
subsequent  to  (December  31,  1917  or  April  12,  1918)." 

105889°— 19 22 


338 

T.  Transactions  of  the  Corporation  including  those  arising  out  of 
cash  receipts  or  disbursements,  which  do  not  affect  or  enter  into  and 
form  a  part  of  the  AVater  Line  operating  income  under  Federal  con- 
irol,  such  as  Interest  and  Dividends  received  and  paid,  and  other 
similar  Corporate  transactions,  including  Additions,  and  Better- 
ments to  Floating  Equipment  and  Terminal  Property,  shall  not  be 
recorded  on  or  passed  through  the  Federal  books,  unless  such  trans- 
actions be  negotiated  and  conducted  for  account  of  the  Corporation 
by  or  under  the  direction  of  the  Director  General.  Where  such  trans- 
actions are  negotiated  and  conducted  by  or  under  the  direction  of 
the  Director  General,  the  transactions  shall  be  recorded  on  the  Fed- 
eral books,  but  credited  or  charged  to  an  account  styled  "  (name  of 
corporation)  Corporate  Transactions."  Concurrently  corresponding 
entries  should  be  made  on  the  Corporate  books,  charging  or  credit- 
ing the  accounts  prescribed  by  the  Interstate  Commerce  Commission 
or  which  may  hereafter  be  prescribed :  the  Offset  being  in  an  account 
styled  "  U.  S.  Government — Corporate  Transactions."  Where  Addi- 
tions and  Betterments  are  made  to  Floating  Equipment  or  Terminal 
Property  by  or  under  the  direction  of  the  Director  General,  the 
expenditures  shall  be  charged  on  the  Federal  books  to  a  Deferred 
Asset  Account  styled  "(name  of  corporation)  Additions  and  Better- 
ments." Concurrently  entries  should  be  made  on  the  Corporate 
books,  charging  the  appropriate  accounts  and  crediting  a  Deferred 
Liability  Account  styled  "  U.  S.  Government — Additions  and  Better- 
ments." 

8.  Current  or  operating  assets  other  than  those  prescribed  in  para- 
graphs 2,  3,  4,  and  5  hereof,  such  as  "  Traffic  Balances  Owed  by  Other 
Companies,"  "  Balances  Due  from  Individuals  and  Companies,"  and 
such  assets  as  are  carried  under  the  caption  "  Miscellaneous  Accounts 
Receivable,"  and  Liabilities  such  as  "  Audited  Vouchers  and  Wages 
Unpaid,"  "Traffic  Balances  Owed  to  Other  Companies."  and  "Mis- 
cellaneous Accounts  Payable,"  which  were  due  to  or  by  the  Corpora- 
tion as  of  (December  31,  1917  or  April  12,  1918),  shall  not  be  trans- 
ferred in  detail  to  the  Federal  books,  but  as  and  when  such  assets 
are  collected  or  the  liabilities  are  paid,  they  shall  be  credited  or 
debited  as  the  case  may  be  on  the  Federal  books,  to  a  Deferred  Lia- 
bility Account  stjded  "(name  of  Corporation)  Assets,  (December  31, 
1917  or  April  12,  1918)  Collected"  or  to  a  Deferred  Asset  Account 
styled  "  (name  of  corporation)  Liabilities  (December  31,  1917  or 
April  12,  1918),  Paid/'  There  should  be  made  concurrently  on  the 
Corporate  books  corresponding  entries  debiting  and  crediting  the 
U.  S.  Government  with  assets  collected  and  liabilities  paid. 

9.  Transactions  relating  to  operations  as  defined  in  paragraph  No. 
G  hereof,  if  not  previously  accrued,  shall  be  included  in  and  form 


339 

a  part  of  the  operating  results  of  each  Carrier  by  Water  under 
Federal  control  regardless  of  the  date  thereof.  Items  clearly  appli- 
cable to  the  period  prior  to  (January  1,  1918  or  April  13,  1918), 
commonly  called  "  lap-overs  "  shall  be  ascertained  currently  and  set 
up  on  the  Federal  books  and  included  in  the  appropriate  accounts 
as  heretofore.  At  the  end  of  each  month  the  total  of  the  "  lap-over' 
credit  items  shall  be  charged  to  an  Unadjusted  Debit  Account  styled 
''Revenue  Prior  to  (January  1,  1918  or  April  13,  1918,)"  and 
credited  to  a  Deferred  Liability  Account  styled  "  (name  of  corpora- 
tion) Revenue  Prior  to  (January  1,  1918  or  April  13,  1918)".  The 
total  of  "lap-over''  debit  items  shall  be  credited  to  an  Unadjusted 
Credit  Account  styled  "  Expenses  Prior  to  (January  1,  1918  or  April 
13,  1918)"  and  charged  to  a  Deferred  Asset  Account  styled  "(name 
of  corporation)  Expenses  Prior  to  (January  1,  1918  or  April  13. 
1918)".  Operating  Revenues  which  have  been  accrued  currently  in 
accordance  with  the  established  practice  of  the  Carriers  by  Water 
shall  be  considered  as  current  revenuas  and  not  as  "  lap-over  "  items. 
All  sailings  prior  to  midnight  (December  31,  1917  or  April  12,  1918), 
and  all  revenues  and  expenses  applicable  thereto  shall  be  considered 
as  revenues  and  expenses  of  the  Corporation  or  previous  operator  and 
if  such  transactions  be  concluded  by  the  Federal  interests  such  items 
shall  be  considered  as  "  lap-overs "  and  handled  in  the  accounts 
accordingly.  All  revenues  and  expenses  applicable  to  sailings  after 
midnight  of  the  dates  mentioned  as  the  case  may  be,  shall  be  con- 
sidered revenues  and  expenses  of  the  Director  General.  If  during 
the  month  of  April,  1918,  expenses  be  incurred  on  a  monthly  basis, 
which  cannot  be  directly  assigned  to  an  individual  vessel  or  to  the 
period  either  prior  or  subsequent  to  April  12,  1918,  such  as  general 
expenses,  overheads,  etc.,  such  expenses  for  convenience  of  accounting 
shall  be  assigned  12/30ths  or  40%  to  the  corporate  interests  and 
18/30ths  or  60%  to  the  Federal  interests;  the  same  principle  should 
apply  to  apportionment  of  revenues  of  a  similar  character  accrued 
during  the  month  of  April,  1918. 

10.  The  Accounts  between  the  U.  S.  Government  and  the  Cor- 
poration for  which  provision  is  made  herein  shall  be  adjusted  in  such 
manner  as  may  be  hereafter  mutually  agi'eecl  iipon. 

11.  Inquiries  as  to  interpretations  and  application  of  the  provisions 
of  this  order  and  the  procedure  to  be  observed  under  its  require- 
ments, shall  be  addressed  to  the  Director  of  Public  Service  and  Ac- 
counting, Washington,  D.  C. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


340 
General  Order  No.  53. 

Washington,  November  IS,  1918. 

Whereas  certain  of  the  raih'oads  now  under  control  of  the  Director 
General  have  in  existence  at  this  time  agreements  with  the  Order  of 
Railroad  Telegraphers,  Switchmen's  Union  of  North  America, 
Brotherhood  of  Railway  Clerks,  and  United  Brotherhood  of  Mainte- 
nance-of-Way  Employees  which  provide  for  basis  of  compensation 
and  regulations  of  employment ;  and 

Whereas  in  existing  circumstances  it  is  the  duty  of  both  officers 
and  employees  of  the  railroads  under  Federal  control  promptly  and 
equitably  to  adjust  an}^  controversies  which  may  arise,  thereby  elimi- 
nating misunderstandings  which  tend  to  lessen  the  efficiency  of  the 
service. 

It  is  hereby  ordered,  That  the  basis  arrived  at  in  the  annexed 
understanding  between  Messrs.  A.  H.  Smith,  C.  H.  Markham,  R.  H. 
Aishton,  Hale  Holden,  B.  F.  Bush,  B.  L.  Winchell  and  N.  D.  Maher, 
Regional  Directors,  representing  the  railroads  in  their  respective 
regions,  which  now  have,  or  may  hereafter  have  such  schedules  or 
agreements  with  the  chief  executive  officers  of  the  Order  of  Railroad 
Telegraphers,  Switchmen's  Union  of  North  America,  Brotherhood  of 
Railway  Clerks,  and  United  Brotherhood  of  Maintenance-of-Way 
Employees,  be  and  the  same  is  hereby,  adopted  and  put  into  effect  as 
of  November  1'2,  1918. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Meirooraiidum  of  an  Under  standing  between  Messrs.  A.  H.  SmUh, 
C.  II.  Markham,  R.  II.  Aishton,  Hale  EoUen-,  B.  F.  Bush,  B.  L. 
Winchell,  N.  D.  Mahcr,  Regional  Directors,  representing  the  rail- 
roads in  their  respective  regions,  and  Mr.  H.  B.  Perhamth,  Presi- 
dent, Order  of  Railroad  Telegraphers;  Mr.  S.  E.  Ileherling, 
Prts'dent,  Stcitchnun^s  Union  of  North  America;  Mr.  J.  J.  For- 
rester, President,  Brotherhood  of  Railway  Clerks;  Mr.  A.  E. 
Banker,  President,  United  Brotherhood  of  Maintenance-of-Way 
Employees. 

It  is  rNDERSTooD.  That  all  controversies  growing  out  of  the  inter- 
pretation or  application  of  the  provisions  of  the  wage  schedules  or 
agreements  Avliich  are  not  promptly  adjusted  by  the  officials  and  the 
employees  on  any  one  of  the  railroads  operated  by  the  Government 
shall  be  disposed  of  in  the  following  manner : 

1.  There  shall  be  at  once  created  a  connnission,  to  be  known  as 
Railway  Board  of  Adjustment  No.  3,  to  consist  of  8  members.  4  to 
be  selected  by  the  said  regional  directors  and  compensated  by  the 


ra 


341 

,.ailro<ids,  and  one  each  by  the  chief  executive  officer  of  each  of  the 
4  organizations  of  employees  hereinbefore  named  and  compensated 
bv  siicli  organizations. 

-2.  This  Board  of  Adjustment  No.  3  shall  meet  in  the  city  of  Wash- 
ington within  10  days  after  the  selection  of  its  members  and  elect  a 
chairman  and  vice  chairman,  who  shall  be  members  of  the  board. 
The  chairman  or  vice  chairman  will  preside  at  meetings  of  the 
board  and  both  will  be  required  to  vote  upon  the  adoption  of  all 
decisions  of  the  board. 

3.  The  board  shall  meet  regularly  at  stated  times  each  month, 
and  continue  in  session  until  all  matters  before  it  are  considered. 

4.  Unless  otherwise  mutually  agreed,  all  meetings  of  the  board 
sliall  he  held  in  the  city  of  Washington:  Provided,  That  the  board 
shall  have  authority  to  empower  two  or  more  of  its  members  to 
conduct  hearings  and  pass  upon  controversies,  wdien  properly  sub- 
mitted at  any  place  designated  by  the  board :  Provided  further,  That 
such  subdivision  of  the  board  will  not  be  authorized  to  make  final 
decision.  All  decisions  shall  be  made  and  approved  by  the  entire 
board,  as  herein  provided. 

5.  Should  a  vacancy  occur  in  the  board  for  any  cause,  such  va- 
cancies shall  be  immediately  filled  by  the  same  appointive  authority 
which  made  the  oi»iginal  selection. 

6.  (Article  6  left  blank  in  this  memorandum  because  Article  6  for 
Railwaj^  Board  of  Adjustment  No.  1  refers  to  matters  pertaining  to 
the  Commission  of  Eight.  In  order  that  all  other  articles  in  this 
]Meiiiorandum  of  Understanding  may  bear  the  same  numbers  as 
similar  articles  for  Railway  Board  of  Adjustment  No.  1,  Article  6 
has  been  left  blank.) 

7.  The  Board  of  Adjustment  No.  3  shall  render  decisions  on  all 
matters  in  dispute  as  provided  in  the  preamble  hereof,  and  when 
properly  submitted  to  the  board. 

8.  The  broad  question  of  wages  and  hours  will  be  considered  by 
Tlie  Board  of  Railroad  Wages  and  Working  Conditions,  but  matters 
of  controversies  arising  from  interpretations  of  wage  agreements, 
not  including  matters  passed  upon  by  The  Board  of  Rtiilroad  Wage> 
and  Working  Conditions,  shall  be  decided  by  the  Railway  Board  of 
Adjustment  No.  3,  when  properly  presented  to  it. 

9.  Wages  and  ho\u's,  when  fixed  by  the  Director  General,  shall  be 
incorporated  into  existing  agreements  on  the  several  railroads,  and 
should  differences  arise  between  the  management  and  the  employees 
of  any  of  the  railroads  as  to  such  incorporation,  such  questions  of 
difference  shall  be  decided  by  the  Railway  Board  of  Adjustment  No. 
3,  when  properly  presented,  subject  always  to  review  by  the  Director 
General. 


342 

10.  Personal  grievances  or  controversies  arising  under  interpreta- 
tion of  wage  agreements,  and  all  otiier  disputes  arising  between 
officials  of  a  railroad  and  its  employees,  covered  bj^  this  understand- 
ing, will  be  handled  in  their  usual  manner  by  general  committee  of 
the  employees  up  to  and  including  the  chief  operating  officer  of  the 
railroad  (or  some  one  officially  designated  by  him),  when,  if  an 
agreement  is  not  reached,  the  chairman  of  tlie  general  committee  of 
employees  may  refer  the  matter  to  the  chief  executive  officer  of  tlie 
organization  concerned,  and  if  the  contention  of  the  employees'  com- 
mittee is  approved  by  such  executive  officer,  then  the  chief  operating 
officer  of  the  railroad  and  the  chief  executive  officer  of  the  organiza- 
tion concerned  shall  refer  the  matter,  with  all  supporting  papers,  to 
the  Director,  of  the  Division  of  Labor  of  the  United  States  Railroad 
Administration,  who  will  in  turn  present  the  case  to  the  Railway 
Board  of  Adjustment  No.  3,  which  board  shall  promptly  hear  and 
decide  the  case,  giving  due  notice  to  the  chief  operating  officer  of  the 
railroad  interested  and  to  the  chief  executive  officer  of  the  organi- 
zation concerned  of  the  time  set  for  hearing. 

11.  No  matter  will  be  considered  hy  the  Railway  Board  of  Adjust- 
ment No.  3  unless  officially  referred  to  it  in  the  manner  herein  pre- 
scribed. 

12.  In  hearings  before  the  Railway  Board  of  Adjustment  No.  3,  in 
matters  properly  submitted  for  its  consideration,  the  railroad  shall  be 
represented  by  such  person  or  persons  as  may  be  designated  by  the 
chief  operating  officer,  and  the  employees  shall  be  represented  by  such 
person  or  persons  as  may  he  designated  by  the  chief  executive  officer 
of  the  organization  concerned. 

13.  All  clerical  and  office  expenses  will  be  paid  by  the  United 
States  Railroad  Administration.  The  railroad  directly  concerned 
and  the  organization  involved  in  a  hearing  will,  respectively,  assume 
any  expense  incurred  in  presenting  a  case. 

14.  In  each  case  an  effort  should  be  made  to  present  a  joint  con- 
crete statement  of  facts  as  to  any  controversies,  but  the  board  is 
fully  authorized  to  require  information  in  addition  to  the  concrete 
statement  of  facts,  and  may  call  upon  the  chief  operating  officer  of 
the  railroad  or  the  chief  executive  officer  of  the  organization  con- 
cerned for  additional  evidence,  either  oral  or  written. 

15.  All  decisions  of  the  Railway  Board  of  Adjustment  No.  3  shall 
bo  approved  by  a  majority  vote  of  all  members  of  the  board. 

16.  After  a  matter  has  been  considered  by  the  board,  and  in  the 
event  a  majority  vote  can  not  be  obtained,  then  any  six  members  of 
the  board  may  elect  to  refer  the  matter  upon  which  no  decision 
has  been  reached  to  the  Director  General  of  Railroads  for  a  final 
decision. 


343 

17.  The  Railway  Board  of  Adjustment  Xo.  3  shall  keep  a  complete 
and  accurate  record  of  all  matters  submitted  for  its  consideration 
and  of  all  decisions  made  by  the  board. 

18.  A  report  of  all  cases  decided,  including  the  decision,  will  be 
filed  with  the  Director,  Division  of  Labor  of  the  United  States  Rail- 
road Administration,  with  the  chief  operating  officer  of  the  railroad 
affected,  the  several  regional  directors,  and  with  the  chief  executive 
officers  of  the  organizations  concerned. 

19.  This  understanding  shall  become  effective  upon  its  approval  by 
the  Director  General  of  Railroads  and  shall  remain  in  full  force  and 
effect  during  the  period  of  the  present  war,  and  thereafter,  unless 
a  majority  of  the  regional  directors,  on  the  one  hand,  as  representing 
the  railroads,  or  a  majority  of  the  chief  executive  officers  of  the  organ- 
izations, on  the  other  hand,  as  representing  the  employees,  shall 
desire  to  terminate  the  same,  which  can,  in  these  circumstances,  be 
done  on  thirty  (30)  days'  formal  notice,  or  shall  be  terminated  by  the 
Director  General  himself,  at  his  discretion,  on  thirty  (30)  daj'^s' 
formal  notice. 

R.  H.  AisHTON,  A.  H.  Smith, 

B.  L,  WiNCHELi.,  C.  H.  Markham, 

N.  D.  Maker,  B.  F.  Bush, 

Hale  Holden, 
Regional  Directors  for  the  Railroads  vmder  Governrnent  Control. 
H.  B.  Perham,  S.  E.  Heberling, 

Pres,  Order  of  Ry.  Telegraphers.  Pres.     S'witohmen''s 

Union  of  N.  A. 
Jas.  J.  Forrester,  A.  E.  Barker, 

President  Brotherhood  of  Ry.  Clerks.  Pres.  United  Broth- 

erhood of  Mainte- 
nance -  of  -  ^yay 
Employees  and 
Railroad  Shop 
Laborers. 


General  Order  No.  54. 

Washixgtox,  Novemher  13.,  1918. 

Whereas  in  Supplement  No.  9  to  General  Order  No.  27  the  Board 
of  Railroad  Wages  and  Working  Conditions  were  assigned  the  duty 
of  hearing  and  investigating  matters  presented  by  officers  and  em- 
ployees of  the  American  Railway  Express  Company,  or  their  repre- 
sentative, affecting  wages  and  working  conditions;  and 

"\^liereas  no  tribunal  has  heretofore  been  created  for  the  adjust- 
ment of  disputes  arising  between  the  American  Railway  Express 
Company  and  its  employees  other  than  those  affecting  wages  and 
working  conditions: 


344 

It  is  hereby  ordered,  That  the  Division  of  Labor  of  the  ITnited 
States  Raih'oad  Administration  will  hear  and  investigate,  and  rec- 
ommend adjustments  of  any  disputes!  between  said  Express  Com- 
pan}'  and  its  employees  not  affecting  wages  and  working  conditions. 

Any  such  dispute  shall  be  transmitted  to  the  Director  of  the  Di- 
vision of  Labor,  in  accordance  with  procedure  established  by 
him,  being  substantially  as  follows : 

Personal  grievances  or  controversies  will  be  handled  in  the  usual 
manner  by  the  individual,  his  representative,  or  by  committees  of 
employees,  up  to  and  including  the  chief  operating  officer  of  the 
American  Railway  Express  Company,  or  officer  designated  by  him, 
when,  if  an  agreement  is  not  reached,  the  individual,  his  representa- 
tive or  the  chairman  of  his  Committee  and  the  officer  of  the  Express 
Company  Avill  refer  the  matter  to  the  Director  of  the  Division  of 
Labor. 

A  complete  statement  of  the  cause  of  complaint  will  be  filed  with 
the  Director  of  the  Division  of  Labor.  When  an  adjustment  is  not 
reached  through  correspondence,  a  representative  will  be  assigned  to 
investigate,  and  if  by  his  assistance  no  agreement  is  then  reached,  the 
matter  in  controversy  will  be  referred  again  to  the  Director  of  the 
Division  of  Labor. 

General  Order  No.  8,  issued  February  21,  1918,  shall  also  be  appli- 
cable to  employees  of  the  American  Railway  Express  Company,  ex- 
cept where  the  text  of  same  is  clearly  not  applicable.  Especial  at- 
tention is  directed  to  Article  5  of  (reneral  Order  No.  8,  as  follows: 

No  discrimination  will  be  made  in  the  employment,  retention,  or  conditions 
of  employment  of  employees  becanse  of  membership  or  nonraembership  in 
labor  organizations. 

Now  that  a  proper  method  has  been  established  for  the  adjust- 
ment of  controversies  there  is  no  longer  any  occasion  or  excuse  for 
employees  of  the  Express  Company  adopting  other  methods  for  se- 
curing what  they  believe  is  jusl  treatment.  I  quote  from  General 
Order  No.  8  as  follows,  and  urge  that  the  officials  and  employees  of 
the  American  Railway  Express  Company  be  governed  thereby: 

There  must  be  cooperation,  jiot  antagonism :  confidence,  not  suspicion ;  mu- 
tual helpfulness,  not  grudging  performance;  just  consideration,  not  arbitrary 
disregard  of  each  other's  I'ights  and  feelings;  a  fine  discipline  based  on  mutual 
respect  and  sympathy;  iiiul  ;in  earnesr  desire  to  serve  the  great  public  faitli- 
fiilly  and  efficiently.  This  is  tlie  new  spirit  and  purpose  that  must  pervade 
every  part  and  branch  of  the  natiouiil  v;iilroad  service. 

W.  G.  McAdoo, 

Dirprfor  Oeneral  of  Railroada. 


345 

General  Order  No.  55. 

coiilection   of  transportatiok    charges   and  disposition  of  over- 
charges, undercharges,  and  agency  relief  claims. 

Washington,  Noveinber'  H,  1918, 
The  following  regulations  shall  govern  the  assessment  and  collec- 
tion of  transportation  and  other  charges  for  all  services  performed  by 
carriers  under  Federal  control;  the  refund  of  overcharges,  and  the 
collection  of  undercharges,  and  also  the  disposition  in  the  accounts 
of  such  carriers  of  uncollectible  undercharges  and  agency  relief 
claims. 

(1)  Officers  and  agents  of  carriers  under  Federal  control  are  re- 

quired and  expected  to  collect  the  correct  amount  due  for 
each  service  performed,  determined  or  determinable  by 
the  application  of  the  lawfully  published  rate  or  rates 
applicable  to  such  services,  plus  charges  for  intermediate 
or  terminal  service  not  included  in  and  made  a  part  of 
such  rate  or  rates,  and  war  taxes  applicable  to  the  fore- 
going. 

(2)  They  shall  continue,  or  if  not  already  established,  institute 

such  methods  as  may  be  necessary  to  insure,  as  accurately 
as  possible,  the  correctness  of  such  charges  before  the 
collection  thereof. 

(3)  When  the  amount  of  overcharge  is  detei mined  after  collec- 

tion of  charges,  refund  shall  be  made  on  presentation  of 
original  freight  receipt,  and  the  amount  of  such  refund 
shall  be  indorsed  on  such  receipt. 
(•i)  Formal  claims  for  overcharge  presented  by  claimants  shall 
be  prepared  on  the  standard  form  approved  by  the  Inter- 
state Commerce  Commission.  They  shall  be  supported  by 
the  original  paid  freight  receipt,  and  if  claim  is  based  on 
weight,  misrouting,  valuation,  etc.,  by  all  other  obtainable 
documents  or  particulars.  If  the  original  paid  freight 
receipt  can  not  be  presented,  claimant's  indenniity  bond 
may  be  required.  If  overcharge  is  based  on  the  rate  clear, 
reference  shall  be  shown  to  the  tariff  or  base  in  which  the 
rate  claimed  is  published.  Such  formal  claims  shall  be 
presented  to,  and  adjusted  by,  either  the  initial  or  the 
destination  carrier.  If  claims  are  presented  to  inter- 
mediate carriers,  they  shall  be  immediateh^  transmitted 
to  one  of  those  named. 


346 

(5)  Claims  paid  by  carriers  other  than  the  carrier  which  col- 

lected the  freight  charges  shall,  in  the  discretion  of  the 
accounting  officer,  be  sent  to  such  collecting  carrier  to  be 
registered,  in  order  that  duplicate  payments  may  be 
avoided. 

(6)  No  apportionment  shall  be  made  among  carriers  of  over- 

charge claims  paid,  or  of  agency  relief  claims  covering 
charges  absorbed,  such  as  switching,  elevation,  transfer 
charges,  terminal  delivery  charges,  icing,  cost  of  grain 
doors,  or  other  analogous  items.  This  rule  does  not  ap- 
ply to  claims  for  charges  on  freight  destroyed  or  con- 
fiscated. 

(7)  Claims  for  overcharges  which  can  not  be  refunded  by  agents 

shall  be  promptly  forwarded  to  the  proper  officer  having 
jurisdiction.  Such  officer,  upon  receipt  of  such  claims, 
properly  supported,  shall  take  immediate  steps,  consistent 
with  accuracy,  to  determine  the  correct  charge  applicable. 
If  the  amount  claimed  be  found  correct,  or  if  an  over- 
charge in  any  amount  be  found,  such  amount  shall  be 
promptly  refunded,  and  any  difference  between  the 
amount  claimed  and  the  amount  refunded  clearly  ex- 
plained to  the  claimant.  If  the  claim  be  wholly  invalid, 
the  claimant  shall  be  notified  promptly. 

(8)  In  the  event  an  undercharge  be  developed  after  collection 

of  transportation  charges,  or  in  the  investigation  of  a 
claim  or  otherwise,  the  officer  or  agent  having  jurisdic- 
tion shall  promptly  prepare  a  freight  bill  for  such  under- 
charge, upon  which  bill  shall  be  shown  all  facts  incident 
to  the  transaction ;  and  such  freight  bill  shall  be  promptly 
presented  for  collection. 

(9)  The  duty  of  collecting  such  undercharge  shall  rest  with  the 

officer  or  agent  whose  duty  it  is  to  collect  transportation 
charges,  and  he  shall  exhaust  every  reasonable  effort  to 
collect  such  amounts. 
(10)  In  the  event  of  failure  to  make  collection  of  an  under- 
charge, after  every  reasonable  effort  has  been  made  to  do 
so,  the  officer  or  agent  charged  with  the  duty  of  collecting 
the  undercharge  shall  promptly  transmit  the  bill  therefor, 
wnth  a  statement  of  all  facts  incident  to  his  efforts  and 
faihire  to  collect,  to  the  accounting  officer  having  juris- 
diction. Appropriate  adjustment  of  the  agent's  accounts 
shall  be  made  by  station  claim  or  otherwise,  according  to 
the  established  practice  of  the  carrier. 


347 

(11)  If  the  facts  presented  with  such  undercharge  indicate  that 

every  reasonable  effort  lias  been  made  to  collect  it,  appro- 
priate action  shall  be  taken  as  follows: 

(«)  If  a  bill  for  an  undercharge  be  for  live  dollars  ($5.00) 
or  less  in  any  one  case,  and  in  the  exercise  of  his  busi- 
ness judgment  he  concludes  that  further  efforts  lo 
collect  would  be  futile,  the  chief  accounting  officer 
shall  direct  that  it  be  charged  off'. 

(h)  If  a  bill  for  an  undercharge  be  for  more  than  five  dol- 
lars ($5.00),  in  any  one  case,  it  shall  be  promptly- 
transmitted  by  the  accounting  officer  to  the  chief  coun- 
sel of  the  carrier  interested,  and  his  recommendations 
as  to  its  disposition  shall  be  followed. 

(c)  If  the  party  liable  for  the  undercharge  can  not  be  lo- 
cated, or  service  can  not  be  had,  or  where,  upon  in- 
vestigation by  counsel  in  good  faith,  it  is  found  that 
legal  process  would  be  futile  and  ineffectual,  counsel 
shall  direct  the  claim  to  be  charged  off,  and  it  shall  be 
so  disposed  of:  otherwise,  suit  shall  be  entered  for  its 
collection. 

(12)  All   undercharges   determined   to   be  uncollectible   as   pre- 

scribed in  subparagraphs  (a),  (&),  and  (c),  of  para- 
graph (11)  hereof,  shall  be  borne  by  the  carrier  which 
originally  settled  the  freight  charges  on  the  erroneous 
basis,  regardless  of  the  responsibility  for  such  error  in 
settlement. 

(13)  In  the  event  that  suit  be  instituted  to  collect  an  under- 

charge, the  cost  of  such  suit  shall  be  borne  by  the  suing 
carrier.  If  the  undercharge  be  not  collected  under  suit, 
the  amount  thereof  shall  be  disposed  of  as  provided  in 
paragraph   (12)   hereof. 

(14)  In  the  event  freight  be  destroyed  or  confiscated  in  transit. 

so  as  to  preclude  the  possibility  of  delivery  of  the  freight 
or  collection  of  the  charges,  no  part  of  the  freight 
charges  accruing  thereon  to  any  participating  carrier 
shall  be  included  in  interline  accounts.  If  waybills  have 
been  audited  and  settled  before  information  concerning 
the  destruction  or  confiscation  of  the  property  is  avail- 
able, such  waybills  shall  be  made  void,  and  resettled 
with  participating  carriers  by  correction  account  or 
through  claim  channels. 


348 

(15)  The  provisions  of  this  order  shall  apply  to  overcharges,  un- 
collectible undercharges,  and  to  other  charges  herein 
referred  to,  which  accrued  or  which  may  accrue  on  and 
subsequent  to  January  1.  1918.  Settlements  which  have 
already  been  completed  on  the  basis  of  rules  heretofore 
in  effect,  shall  not  be  readjusted. 

W.  G.  :McAdoo, 
Virector  General  of  Railroads. 


General  Order  Xo.  56. 

Washington,  Xovernhep  19^  1018. 

Whereas  it  has  been  found  and  is  hereby  certified  to  the  Interstate 
Commerce  Commission  that  in  order  to  defray  the  expenses  of  Fed- 
eral control  and  operation  fairly  chargeable  to  express  and  railway 
operating  exj)enses,  and  also  to  pay  express  and  railway  tax  accruals 
other  than  war  taxes,  net  rents  for  joint  facilities  and  equipment,  and 
compensation  to  the  carriers,  it  is  necessary  to  increase  the  express 
operating  revenues,  and 

Whereas  the  public  interest  requires  that  a  general  advance  in  all 
express  rates  and  charges  on  all  traffic  carried  by  the  American  Eail- 
way  Express  Company  taken  under  Federal  control  under  an  act  of 
Congress  approved  August  29.  1916.  entitled  "  An  act  making  appro- 
priations for  the  support  of  the  Army  for  the  fiscal'  year  ending 
June  thirtieth,  nineteen  hundred  and  seventeen,  and  for  other  pur- 
poses." shall  be  made  by  initiating  the  necessary  rates  and  charges, 
classifications,  regulations  and  practices,  by  filing  the  same  with  the 
Interstate  Commerce  Commission,  under  authority  of  an  act  of  Con- 
gress approved  INIarch  21.  1918.  entitled  "  An  act  to  provide  for  the 
operation  of  transportation  systems  while  under  Federal  control, 
for  the  just  compensation  of  their  owners,  and  for  other  purposes.'' 

Now.  therefore,  under  and  by  virtue  of  the  provision  of  the  said 
act  of  March  21,  1918.  it  is  ordered  that  all  existing  express  rates  and 
charges,  classifications,  regidations  and  practices,  including  changes 
lieretofore  published  but  not  yet  effective,  on  all  traffic  carried  by 
said  American  Railway  Express  Company,  be  increased,  changed, 
modified  or  adopted,  effective  the  first  day  of  January,  1919,  to  the 
extent  and  in  the  manner  indicated  herein,  by  filing  schedules  with 
the  Interstate  Commerce  Commission  effective  on  not  less  than  one 
day's  notice. 

SECTION    1. 

Between  points  in  Zone  1  and  between  points  in  Zone  1  and  points 
in  all  other  Zones,  the  first  and  second  class  rates,  both  interstate 


349 

and  intrastate,  ^hall  be  increased  three  scale  numbers.  Between 
points  both  outside  of  Zone  1,  the  first  and  second  class  rates,  both 
interstate  and  intrastate,  shall  be  increased  two  scale  numbers. 

Merchandise  rates  from  points  in  the  United  States  to  points  in 
Canada  sliall  be  increased  15  cents  per  100  pounds,  and  commodity 
rates  not  stated  in  scale  numbers  shall  be  increased  10  cents  per  100 
pounds. 

SECTION    2. 

Commoditj^  rates,  both  interstate  and  intrastate,  stated  in  scale 
numbers  shall  be  increased  not  more  than  10  cents  per  100  pounds. 

Commodity  rates,  both  interstate  and  intrastate,  Avhich  are  stated 
in  cents  or  in  dollars  and  cents  per  100  pounds,  per  pound  or  other 
unit  of  weight,  shall  be  increased  10  cents  per  100  pounds,  except  as 
to  mileage  or  commodity  rates  on  milk  and  cream.  Commodity  rates, 
both  interstate  and  intrastate,  which  are  stated  in  cents  or  in  dollars 
and  cents  per  crate,  barrel  or  other  package  or  per  car,  shall  be  in- 
creased at  the  rate  of  10  cents  per  100  pounds  based  upon  the  author- 
ized billing  weight. 

SECTION    3. 

Milk  and  cream  mileage  or  commodity  rates,  both  interstate  and 
intrastate,  shall  be  made  25  per  cent  higher  than  rates  in  effect 
July  1.  1918. 

SECTION    4. 

Intrastate  first  and  second  class  rates  in  States  which  have  not 
adopted  the  existing  Interstate  Commerce  Commission  basis  of  first 
and  second  class  rates,  shall  be  made  the  Sfime  as  the  increased  inter- 
state rates  in  the  same  Zone. 

In  States  which  did  not  adopt  the  increase  of  10  per  cent  on  com- 
modity rates  on  intrastate  traffic  as  authorized  by  the  Interstate  Com- 
merce Commission  on  interstate  traffic,  by  Fifteenth  Section  Order 
No.  746,  such  commodity  rates  shall  be  increased  10  per  cent  and 
in  addition  increased  10  cents  per  100  pounds,  except  on  milk  and 
cream  which  shall  be  made  25  per  cent  higher  than  rates  in  effect 
July  1.  1918. 

SECTION    5. 

Where  prior  to  January  1,  1919,  the  Interstate  Commerce  Com- 
mission authorizes  or  prescribes  rates  and  charges  which  have  not 
been  published  pi-ior  to  that  date,  the  rates  and  charges  initially 
established  hereunder  may  be  subsequently  revised  by  applying  the 
increases  prescribed  herein  to  the  rates  and  charges  so  authorized  or 
prescribed  by  the  Interstate  Commerce  Commission. 


SECTION    6. 

All  rates  and  charges,  both  interstate  and  intrastate,  shall  be 
governed  by  and  apply  in  connection  with  the  Tariff  of  First  and 
Second  Class  Express  Rates  I.  C.  C.  No.  2,  Directory  of  Express  Sta- 
tions I.  C.  C.  No.  A-3.  Official  Express  Classification  I.  C.  C.  No.  150, 
Directory  of  Collection  and  Delivery  Limits  I.  C  C  No  A-A,  also 
Terminal  and  Switching  Charges  I  C.  C.  No.  A-2095,  on  file  with 
the  Interstate  Commerce  Commission,  and  supplements  thereto  and 
re-issues  thereof,  which  shall  be  adopted  by  filing  notice  with  the 
Interstate  Commerce  Commission. 

SECTION"   7, 

All  intrastate  rates  which  are  to  be  increased  under  this  order,  if 
not  now  on  file,  shall  be  immediately  filed  with  the  Interstate 
Commerce  Commission.  Such  intrastate  rates  shall  not  be  applied 
to  interstate  shipments  and  the  schedules  containing  said  rates  shall 
be  so  restricted. 

SECTION    8. 

xVll  schedules  published  to  cover  express  rates  and  charges,  classi- 
fications, regulations  and  practices  under  the  provisions  of  this  order 
shall  bear  on  the  title-page  one  of  the  legends  shown  below  in  bold- 
face type. 

If  restricted  to  apply  on  intrastate  traffic  only,  use  the  following: 

"  The  rates  and  charges  made  effective  by  this  schedule  are  initiated 
by  the  Prasident  of  the  United  States  through  the  Director  General, 
United  States  Railroad  Administration,  and  apply  on  intrastate 
traffic  only. 

"  This  schedule  is  published  and  filed  on  not  less  than  one  day's 
notice  with  the  Interstate  Commerce  Commission  under  General 
Order  No.  56  of  the  Director  General,  United  States  Railroad  Admin- 
istration, dated  19th  day  of  November,  1918." 

If  restricted  to  apply  on  interstate  traffic  only,  use  the  following: 

"  The  rates  and  charges  made  effective  by  this  schedule  are  initiated 
by  the  President  of  the  United  States  through  the  Director  General, 
United  States  Railroad  Administration,  and  applj''  to  interstate 
traffic  only. 

'•  This  schedule  is  published  and  filed  on  not  less  than  one  day's 
notice  with  the  Interstate  Commerce  Commission  under  General 
Order  No.  50  of  the  Director  General,  T'^'nited  States  Railroad  Admin- 
istration, dated  19th  day  of  November,  1918." 

If  to  appl}'^  on  both  intrastate  and  interstate  traffic,  use  the  fol- 
lowing: 


351 

"  The  rates  and  charges  made  efFective  by  this  schedule  are  ini- 
tiated by  the  President  of  the  United  States  through  the  Director 
General,  United  States  Railroad  Administration,  and  apply  to  both 
interstate  and  intrastate  traffic. 

"  This  schedule  is  published  and  filed  on  not  less  than  one  day's 
notice  with  the  Interstate  Commerce  Commission  under  General 
Order  No.  56  of  tlie  Director  General,  United  States  Railroad  Admin- 
istration, dated  19th  day  of  November,  1918." 

If  some  of  the  rates  and  charges  therein  are  to  apply  on  interstate 
traffic  and  others  to  intrastate  traffic,  use  the  following: 

"  The  rates  and  charges  made  eifective  by  this  schedule  are  initiated 
by  the  President  of  the  United  States  through  the  Director  General, 
United  States  Railroad  Administration,  and  apply  to  interstate  and 
intrastate  traffic,  as  provided  herein. 

"  This  schedule  is  published  and  filed  on  not  less  than  one  day's 
notice  with  the  Interstate  Commerce  Commission  under  General 
Order  No.  56  of  the  Director  General,  United  States  Railroad  Ad- 
ministration, dated  19th  day  of  November,  1918." 

Given  under  my  hand  this  the  19th  day  of  November,  1918. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


General  Order  No.  57. 

Washington,  November  26,  1918. 

RULES  GOVERNING  THE  INSPECTION,  SELECTION  AND  COOPERING  OR 
REJECTION  OF  CARS  FOR  BULK  GRAIN  LOADING,  THE  RECORDING  OF  LOSS 
OF  GRAIN  FROM  CAR  BY  LEAKAGE  (iF  ANy)  DURING  TRANSIT,  AND  THE 
DISPOSITION  OF  CLAIMS  FOR  LOSS  AND  DAMAGE  OF  GRAIN. 

Claims  on  grain  shipped  in  bulk  constitute  a  large  proportion  of 
loss  and  damage  claims.  Some  of  the  widely  varying  practices  of 
both  shippers  and  carriers  with  respect  thereto  are  of  doubtful  pro- 
priety, and  in  manj'  cases  result  in  undue  preference  and  unjust 
discrimination. 

This  condition  may  be  attributed  largely  to  the  great  number  of 
intricate  factors  entering  into  the  grain  business;  the  condition  of 
scales  and  weighing  practices,  which,  in  many  instances,  result  in 
weights  of  doubtful  accuracy.  Grain  in  bulk  is  sometimes  loaded  at 
large  terminal  elevators  where  so-called  official  weights  are  obtained ; 
in  other  instances,  at  country  elevators  where  weights  are  obtained 
on  small  scales  in  many  drafts;  and  in  other  instances  Avhere  scale 
weights  are  not  used  but  loading  weights  obtained  on  measurement 
basis;  and  at  some  points  where  no  elevators  are  located,  grain  is 


^veighed  over  wagon  scales,  loaded  into  cars  and  the  sum  of  the 
wagon  scale  weights  used  to  represent  the  amount  shipped. 

Destination  weights  are  arrived  at  in  as  many  dilTerent  ways  as  the 
loading  weights,  but,  as  a  general  rule,  the  bulk  of  the  grain  shipped 
is  destined  to  terminal  markets  where  official  weights  are  secured, 
and  the  differences  between  these  loading  and  destination  weights 
constitute  the  basis  of  claims,  although  losses  resulting  from  the 
taking  of  samples  for  inspection  purposes  and  the  failure  of  con- 
signee to  unload  all  the  grain  and  other  wastage,  over  which  the  rail- 
road has  no  control,  are  not  taken  into  consideration  or  accounted  for. 

In  view  of  the  foregoing,  there  is  no  good  reason  why  carriers 
should  assume  responsibility  for  claims,  the  basis  of  which  is  solely 
the  difference  between  these  loading  and  out-turn  weights. 

Therefore,  claims  for  loss  of  bulk  grain  will  be  recognized  only 
where  there  is  evidence  of  negligence  on  the  part  of  the  carriers. 
Leaks  due  to  improper  coopering  of  cars  or  placing  of  gi'ain  door 
boards  are  not  to  be  considered  as  evidence  of  negligence  on  the  part 
of  the  carrier,  and  the  following  rules  shall  apply  until  superseded 
by  others  that  may  be  adopted  as  a  result  of  investigation  and  study 
of  the  subject  now  being  carried  on  by  carriers  and  shippers  in  con- 
nection with  the  Interstate  Commerce  Commission. 

At  the  present  time  there  is  lack  of  uniformity  in  the  disposition 
of  grain  claims.  One  purpose  of  these  rules  is  to  clear  up  this  pres- 
ent situation  and  dispose  of  promptly  such  claims  as  come  within 
these  regidations. 

Rule  1. — Selection  of  Cars  for  Loading. 

Suitable  cars  will  be  furnished  for  bulk  grain  loading.  (See  Defi- 
nition.) 

Definition. — A  suitable  c:ir  for  bulk  grain  loading  is  one  that  is  grain  tight 
and  fit  or  can  be  made  so  by  the  shipper  at  time  and  place  of  loading  by  ordi- 
nary and  proper  care  in  use  of  cooperage  material  and  by  a  reasonable  amount 
of  cleaning. 

Rule  2. — Rejection  by   Shipper. 

While  carriers  are  expected  to  furnish  suitable  equipment,  it  is 
the  duty  of  the  shipper  to  reject  a  car  which  is  unfit  for  the  loading 
intended. 

Shippers  should  not  load  bulk  grain  in  a  car  with  door  post  shat- 
tered or  broken,  or  with  other  defects  of  such  character  as  to  render 
car  obviously  unfit,  or  with  inside  showing  the  presence  of  oil. 
creosote,  fertilizer,  manure,  coal  or  other  damaging  substance  of  like 
or  kindred  character. 


353 

Rule  3. — Cooperage. 

Grain  doors,  or  grain  door  lumber  of  proper  quality  and  dimen- 
sions will  be  furnished  by  the  ean-ier  and  installed  by  the  shipper 
to  cooper  side  and  end  doors  and  other  openings  of  cars  used  for 
bulk  grain  loading. 

Note  1. — Carrier's  agent  at  loading  station  will  ascertain  the  number  of 
temporai*y  sectional  grain  doors,  or  the  number  of  feet  (board  measure)  of 
grain  door  lumber  used  to  cooper  the  car  and  the  approximate  weight  thereof, 
and  note  same  on  waybill. 

Note  2. — Should  the  carrier's  supply  of  grain  door  material  run  short,  local 
agent  will  promptly  notify  his  superintendent,  who  will  immediately  send 
the  required  material  or  authorize  local  agent  to  purchase  a  supply  to  take 
care  of  the  emergency. 

Note  3. — Shippers  or  consignees  must  not  appropriate  carriers'  grain  doors 
or  grain  door  material,  neither  shall  they  use  the  same  ^\athout  specific 
authority  from  the  carrier. 

Accessories'  such  as  nails,  paper,  cheesecloth,  burlap  or  similar 
material  for  calking  or  lining  cars,  required  to  prevent  loss  of  grain 
by  leakage,  shall  be  supplied  by  the  carrier  and  applied  by  the  ship- 
per or  at  his  expense. 

Rule  4.— CYixsigxor,  Consignee  or  Owner  Required  to  Load  and 
Unload  Carload  Freight. 

Except  as  otherwise  provided  by  tariff,  owners  are  required  to 
load  into  or  on  cars  grain  carried  at  carload  ratings,  and  consignee 
or  owner  is  required  to  unload  the  car.  which  includes  the  removal 
of  entire  contents,  including  sweeping  the  car.  Loading  includes 
adequate  securing  of  the  load  in  or  on  car,  also  proper  distribution  of 
the  weight  in  the  car  by  trimming  or  leveling. 

Rule  5. — Shipping  Weights. 

Where  shipper  weighs  the  grain  for  shipment,  he  shall  furnish  the 
carrier  with  a  statement  of  the  car  initials  and  number,  the  total 
scale  weight,  the  type  and  house  number  of  the  scale  used,  the  num- 
ber of  drafts  and  weight  of  each  draft  weighed,  the  date  and  time  of 
weighing,  and  state  whether  official  Board  of  Trade.  Grain  Ex- 
change, State  or  other  properly  supervised  shipping  weights;  also 
state  number  and  approximate  weight  of  grain  doors  used.  This  in- 
formation shall  be  furnished  as  soon  as  practicable,  forwarding  of 
car  not  to  be  delayed  for  this  record. 

Rule  6. — Destination  Weights. 

Consignee  shall  furnish  the  carrier  with  a  statement  of  the  car 
initials  and  number,  the  total  scale  weight,  the  type  and  house  num- 

105880  ° —1 9 2.3 


354 

)3er  of  the  scale  used,  the  number  of  drafts  and  weight  of  each  draft 
weighed,  and  date  and  time  of  weighing,  and  state  whether  official 
Board  of  Trade.  Grain  Exchange,  State  or  other  properly  supervised 
unloading  weight. 

Rule  7. — Leakage  or  Damage  Record. 

If  damage  to  or  leakage  of  grain  is  detected  while  in  carrier's 
possession,  the  necessar}^  repairs  must  be  made  to  prevent  further 
loss  or  damage  and  a  complete  record  mack  thereof.  In  case  of  a 
disputed  claim,  the  records  of  both  carrier  and  claimant  on  said  car 
shall  be  made  available  to  both  parties. 

If  shipper,  consignee,  owner  or  his  or  their  representative  should 
discover  leakage  of  grain  from  car,  he  must  immediately  report  the 
facts  to  carrier  and  afford  reasonable  opportunity  for  verification. 

The  result  of  hammer  testing  will  not  be  accepted  as  proof  of  loss. 

Rule  8. — Claims  on  Clear  and  Defective  Record  Cars. 

{a)  Clear  Record  Cars:  If,  after  thorough  investigation  by  the 
carrier,  no  defect  in  equipment  or  seal  record  is  discovered,  sucli 
record  shall  be  considered  to  show  that  the  carrier  has  delivered 
all  of  the  grain  that  was  loaded  into  the  car.  If  eA-idence  is  produced 
by  the  claimant  indicating  a  defective  record,  such  evidence  shall  be 
investigated  and  given  due  consideration. 

(&)  Defective  Record  Cars:  Where  investigation  discloses  de- 
fect in  equipment,  seal  or  seal  record,  or  a  transfer  in  transit  by  the 
carrier  of  a  car  of  grain  upon  which  there  is  a  difference  between 
the  loading  and  unloading  weights,  and  the  shipper  furnishes  duly 
attested  certificates  showing  correctness  of  weights,  and  the  carrier 
can  find  no  defect  in  scale  or  other  facilities  and  no  error  at  points 
of  origin  or  destination,  then,  the  resulting  claims  will  be  adjusted 
subject  to  deduction  of  one-eighth  of  1  per  cent  of  the  established 
loading  weight  as  representing  invisible  loss  and  wastage. 

XoTE. — Transfer  in  transit,  as  referred  to  in  Section  "  b"  of  tliis  rule,  is  a 
transfer  for  wliicli  ttie  railroad  is  responsible,  and  not  a  transfer  because  of  a 
trade  rule,  Oovornniental  requirement,  or  because  of  orders  of  consitiiior,  cou- 
sipnee,  owner  or  tlicii-  representative. 

{c)  Leaks  over  or  through  grain  doors  and  other  leaks  due  to  im- 
proper cooi)ering  by  shipper  shall  not  be  considered  defects  for 
which  the  carrier  is  responsible. 

W.  G.  jMcAdoo, 
Director  General  of  Railroads. 


LIST  OF  CIRCULARS. 

1.  First  seven  staff  appointiiieuts. 

2.  Creation  of  Car  Service  Section. 

3.  Creation  of  Locomotive  Section. 

4.  Creation  of  Interregional  Traffic  Committee. 

5.  Creation  of  Marine  Section. 

6.  Creation  of  Committee  on  Inland  Waterways. 

7.  Creation  of  Safety  Section. 

S.  Railroads  instructed  to  furnish  certain  employees  statements  td  facilitate 

income-tax  returns. 
9.  Creation  of  Division  of  Capital  Expenditures. 

10.  Expenses  re  New  York  offices. 

11.  Supplemental  instructions  re  General  (Jrder  No.  9. 

12.  Instructions  re  cash  on  hand  December  31,  1917. 

13.  Liberty  loan  investments  by  railroads. 

14.  Creation  of  Protection  of  Railroad  Property  Section. 

15.  Creation  of  Inspection  and  Test  Section. 

16.  Creation  of  Car  Relief  Section  (corrected  to  Apr.  1 1. 

17.  Instructions  re  expense  of  officers,  etc.,  not  connected  with  operation. 

18.  Railroad  subscriptions  to  third  Liberty  loan. 

19.  Appointment  of  acting  treasurer. 

20.  Alleged  protests  re  General  Order  No.  8. 

21.  Fire  insurance  contracts. 

22.  Organization  of  Railwny  Board  of  Adjustment  No.  1. 

23.  Creation  of  Coastwise  Steamship  Advisory  Committee. 

24.  Comments  re   Railroad   Wage   Commission   investigation   and    plea    to   buy 

Liberty  bonds. 

25.  Progress  of  authorized  editions  and  betterments  and  equipment. 

26.  Appointment  of  Walker  D.  Hines  as  Assistant  Director  General  of  Railroads. 

27.  Appointment  of  Theodore  H.  Price  actuary. 

28.  Appointment  of  C.  H.  Markham  regional  director,  Allegheny  Region. 

Supplement  No.  1.  Railroads  included  in  Allegheny  Region  July  10,  1918. 

29.  Appointment  of  B.  L.  Winchell  regional  director,  Southern  Region. 

30.  Appointment  of  N.  D.  Maher  regional  director,  Pocahontas  Region. 

Supplement  No.  1.  Pocahontas  Region — Ashland  Coal  &  Iron  Railway — 
Included  July  10,  1918. 

31.  Organization  of  Board  of  Railroad  Wages  and  Working  Conditions. 

32.  Division  of  Operation  created. 

33.  Appointment  of  R.  H.  Aishton  regional  director.  Northwestern  Region. 

Supplement   No.   1.  Railroads  included  in   Northwestern   Region   July 
10,  1918. 

34.  Appointment  of  Hale  Holden  regional  director,  Central  Western  Region. 

Supplement  No.  1.  Central  Western  Region — Railroads  included  July 
10,  1918. 

35.  Appointment  of  B.  F.  Bush  regional  director,  Southwestern  Region. 

Supplement  No.  1.  Southwestern  Region — Railroads  included  July  10, 
1918. 

36.  L'rging  railroad  employees  to  invest  in  War  Savings  Stamps. 

37.  Appointment  of  Oscar  A.  Price  Assistant  to  the  Director  General  of  Railroads. 

38.  Organization  of  Railway  Board  of  Ad.iustment  No.  2. 

(355) 


356 

39.  No  agreement  be  reached  between  officials  and  employees  of  any  railroad 

to   adjust    differences   except    as   provided    in    General    Orders   Nos.    13 
and  29. 

40.  Special  representative  United  States  Railroad  Adminit'tratiou — T.  C.  Pow^ 

ell  appointed ;  also  to  continue  duties  as  Manager  of  Inland  Traffic. 

41.  Eastern  Region— Railroads  added  July  10,  1918. 

42.  Southern  Region— Railroads  added  .Tuly  10,  1918. 

43.  Registration  and  conversion  of  Liberty  Bonds. 

44.  Road  or  sti'eet  construction  and  other  publi<?  improvements. 

44-A.  (Cancels  Circular  No.  44.)  Road  or  street  constiiictioii  and  other  pub- 
lic improvements. 

4o.  Acting  treasurer  United  States  Railroad  Administration — L.  G.  Scott  ap- 
pointed. 

46.  Creation  of  Short  Line  Section  and  appointment  of  E.  C.  Niles  as  Manager. 

47.  Pullman  Company  Operating  Department  hereafter  to  be  known  as  Pull- 

man Car  Lines. 

48.  Creation  of  Freight  Claim  Section, 

49.  Claims,  manner  in  which  claims  are  to  be  handled. 

50.  Bureau  for  Suggestions  and  Complaints  oi'ganized. 

51.  Liberty   Loan,   Fourth — War    Savings   Stamps — Special   appeal   of  Director 

General. 

52.  Appointment   of    H.    B.    Walker,    Federal    ^Manager,    Coastwise    Steamship 

Lines. 

53.  Creation    of   Division    of   Inland    AVaterways,    G.    A.    Tomlinson    appointed 

Director,  and  H.   S.  Noble  appointed  Federal  Manager,   New  York  and 
New  Jersey  Canals. 

54.  Creation   of   Insurance    and   Fire   Protection    Section,    and   Advisory    Com- 

mittee. 
54-A.  Insurance  and  Fire  Protection  Section  name  changed  to  Fire  Loss  and 
Protection  Section. 

55.  Marine    Section,    Division    of    Transportation    discontinued — Effective    Sep- 

tember 1,  1918. 

56.  Liberty  Loan,  Fourth — Director  General  urges  all  employees  to  cooperate 

and  suggests  they  subscribe  through  railroads. 
56-A.  Liberty   Loan,    Fourth — Officials   and   employees   urged   to   cooperate   in 
securing  a  "  100  per  cent "'  result  on  every  line. 

57.  Registrants  under  Selective  Service  Act.  classification  of. 

58.  Health  and  Medical  Relief  Committee  appointed. 

59.  Banks  and   Trust   Companies   in   which   funds  of  United   States   Railroad 

Administration  or  of  the  various  Federal  Treasurers  are  deposited,   in 
future  must  pay  interest  at  specified  rates. 

60.  Creation  of  Marine  Insurance  Section. 

61.  Telegraph  and   telephone  facilities — Rules  for  relieving  from  unnecessary 

business. 

62.  Appointment  of  Charles  A.   Lutz   treasurer. 

63.  Re  Bureau  for  the  Safe  Transportation  of  Explosives. 

64.  Presents,  Cliristmas,  etc..  from  sliippers  to  officers  and  employees  of  rail- 

roads should  be  discontinued. 

65.  Railway    Board    of   .\djustnient    No.   3,    organization    of    (see   also   G.    O. 

No.  53). 

66.  Railroads  transferred  fi-um  Eastern  to  Allegheny  Region. 

67.  Instruction  for  handling  lf>ss  itf  or  damage  to  property  by  tire. 

68.  Railroads    transferred— Allegheny    to    Eastern    Region— Eastern    to    Alle- 

gheny Region. 
60.  Creation   of   Secret    Service   and   Police   Section,   W.    J.    Flynn    appointed 
Chief. 


CIRCULARS   ISSUED   BY   THE    DIRECTOR    GENERAL   OF 

RAILROADS. 

Circular  No.  1. 

AVashington,  D.  C,  Fehnuiiy  9,  191S. 

I  hereby  announce  the  organization  of  my  staff  as  follows : 

Assistant  to  the  Director  (leneral,  Walker  D.  Hines. 

General  counsel.  John  Barton  Payne. 

Director  Division  of  Finance  and  Purchasing.  John  Skelton  AVil- 
liams. 

Director  Division  of  Transportation,  Carl  K.  Gray. 

Director  Division  of  Traffic.  Edward  Chambers. 

Director  Division  of  Labor,  W.  S.  Carter. 

Director  Division  of  Public  Service  and  Accounting,  Charles  A. 
Prouty. 

Additional  divisions  will  be  created  from  time  to  time  as  conditions 
may  justify. 

W.  G.  McAdoo, 
Directoi'  General  of  Railroads. 


CiRCTXAR   Xo.   '2. 

Washixgtox,  D.  C.  Fehrmry  6,  1918. 

For  the  handling  of  car  service  and  other  matters  formerly  in 
charge  of  the  commission  on  car  service  of  the  American  Raihvay 
Association,  the  Car  Service  Section  of  the  Division  of  Transporta- 
tion is  hereby  created.  Mr.  W.  C.  Kendall  is  appointed  manager  of 
the  Car  Service  Section ;  and  Messrs.  W.  L.  Barnes,  E.  H.  De  Groot, 
jr.,  A.  G.  Gutheim,  C.  B.  Phelps,  G.  F.  Eichardson,  and  J.  A.  Som- 
erville  are  appointed  assistant  managers. 

The  Car  Service  Section — 

(a)  Will  have  charge  of  all  matters  pertaining  to  car  service,  in- 
cluding the  relocation  of  freight  cars. 

(h)  Will  provide  through  the  regional  director,  on  application  of 
])roper  govermiiental  authorities,  for  preference  in  car  supply  and 
movement,  where  more  than  10  cars  are  involved. 

(c)  Will  receive  from  railroads  such  reports,  periodical  or  special, 
as  it  may  require  in  order  to  keep  fully  informed  with  respect  to  car 
service,  embargo,  or  transportation  conditions. 

id)  Must  be  promptly  informed  of  all  embargoes  placed,  modi- 
fied, or  removed,  and  will,  from  time  to  time,  recommend  such  em- 

(3.57) 


358 

bargo  policies  and  exemptions  as  the  needs  of  the  Government,  sea- 
sonal requirements,  or  other  circumstances  may  demand. 

(e)  Will  deal  directly  with  railroads  with  respect  to  matters 
within  its  jurisdiction,  and  will  keep  the  regional  directors,  properly 
advised. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


C1RCUL.AR  No.  3. 

Washington,  D.  C,  February  P,  1918. 
The  Locomotive  Section  of  the  Division  of  Transportation  is  here- 
by created,  and  Mr.  Frank  McManamy  appointed  manager,  with 
office  in  the  Interstate  Commerce  Building,  Washington,  D.  C. 

The  manager  of  the  Locomotive  Section  will  supervise  the  con- 
dition of,  and  repairs  to,  locomotives  at  all  railway  shops  and  round- 
houses and  at  outside  shops,  in  addition  to  his  present  duties  for  the 
Interstate  Commerce  Commission  as  its  chief  inspector  of  loco- 
motives. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  i. 

Washington,  D.  C,  Fehr-uary  ^,  1918. 

I  hereby  appoint  an  interregional  traffic  committee  consisting  of 
B.  L.  Winchell,  traffic  director  of  Union  Pacific;  G.  F.  Randolph, 
commissioner  trunlf  lines;  T.  C.  Powell,  vice  president  southern  rail- 
ways. 

This  committee  is  to  make  a  study  of  the  larger  traffic  movements 
with  a  view  to  seeing  what  steps  can  be  taken  advantageously  in 
order  to  shift  traffic  from  the  more  seriously  congested  gateways  to 
the  less  congested  gateways  and  from  the  more  congested  ports  to  the 
less  congested  ports,  as  well  as  the  more  advantageous  distribution  of 
such  traffic.  The  situation  will  be  viewed  from  the  standpoint  of  a 
national  railroad  system  consisting  of  all  the  railroads  instead  of,  as 
heretofore,  from  the  separate  standpoints  of  independent  and  com- 
petitive railroads. 

The  commission  will  deal  principally  with  the  questions  affecting 
movements  of  traffic  between  the  three  regions  and  its  work  will  not 
interfere  with  similar  studies  which  will  be  conducted  under  each  of 
the  three  regional  directors  with  reference  to  matters  within  their 
respective  jurisdictions. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


359 

Circular  No.  5. 

Washington,  Fehruary  15^  1918, 
The  Marine  Section  of  the  Division  of  Transportation  is  hereby 
created,  and  Mr.  W.  H.  Pleasants  is  appointed  manager  with  office  at 
Washington,  D.  C. 

The  manager  of  the  Marine  Section  will  supervise  the  operation  of 
the  shipping  under  the  control  of  the  director  general  and  will  also 
give  special  attention  to  coordinating  the  relations  between  all  other 
shipping  (including  that  on  the  Great  Lakes)  and  the  railroads. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  6. 

Washington,  February  16^  1918. 

I  hereby  appoint  a  committee  on  inland  waterways  consisting  of 
Maj.  Gen.  W.  M.  Black,  Chief  of  Engineers,  United  States  Army, 
chairman;  Mr.  Walter  S.  Dickey,  of  Kansas  City,  Mo.;  Mr.  G.  A. 
Tomlinson,  of  Duluth,  Minn. ;  Col.  Charles  Keller,  Corps  of  Engi- 
neers, United  States  Army,  secretary. 

This  committee  is  to  make  a  prompt  investigation  and  to  report  as 
soon  as  practicable  a  definite  plan  describing  the  extent  to  which  and 
the  manner  in  which  additional  use  may  be  made  of  the  internal 
waterways  for  the  economical  and  expeditious  movement  of  traffic  of 
the  country  so  as  to  relieve  or  supplement  the  railways  under  existing 
war  conditions.  While  the  entire  waterway  and  transportation  situa- 
tion is  to  be  scrutinized,  only  those  waterways  that  will  effectively 
afford  national  relief  shall  be  included  in  the  plan  to  be  presented. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  7. 

Washington,  D.  C,  Fehruary  19, 1918. 
The  Safety  Section  of  the  Division  of  Transportation  is  hereby 
created,  and  Mr.  Hiram  W.  Belnap  appointed  manager,  with  office 
in  the  Interstate  Commerce  Building,  Washington,  D.  C. 

The  manager  of  the  Safety  Section  will  have  supervision  over  the 
safety  work  on  all  railroads,  utilizing  such  safety  organizations  as 
are  already  available  and  suggesting  such  others  as  are  desirable,  in 
addition  to  his  present  duties  for  th^  Interstate  Commerce  Commis- 
sion as  chief  of  its  bureau  of  safety. 

W.  G.  McAdoo, 
Director  General  of  Railroads.    . 


360 

ClRCTJLu\R   Xo.    8. 

Washington,  March  2,  WIS. 
It  is  represented  that  numerous  railroad  employees  who  are  not 
paid  fixe<l  annual  salaries  have  not  kept  accurate  records  of  their 
earnings  for  the  calendar  year  1917,  and  therefore  find  it  difficult  to 
make  an  accurate  return  under  the  income  tax  laAv.  Tlie  railroads 
are  required  to  make  to  the  collector  of  internal  revenue  a  report 
as  to  each  employee  who  received  $800  or  more  for  the  calendar  year 
1917.  It  is  therefore  requested  that  you  give  each  employee  who 
does  not  receive  a  fixed  annual  salary,  and  who  is  included  in  the 
report  to  the  collector  of  internal  revenue  as  having  received  $800 
or  more  for  the  calendar  year  1917,  a  statement  as  to  the  amount  of 
compensation  which  has  been  or  will  be  shown  in  such  report  as 
having  been  so  received  by  him,  in  order  to  facilitate  the  making  of 
accurate  income  tax  returns  by  such  employees. 

W.   G.   McAdoo, 
]>(rector  General  of  Railroads. 


Circular  Xo.  9. 

Washington,  D.  C,  Mao-ch  12, 1918. 
The  Division  of  Capital  Expenditures  is  hereby  created  and  Judge 
Robert  8.  Lovett  is  appointed  director  thereof,  Avith  office  in  the 
Interstate  Commerce  Building,  AYashingtin,  D.  C. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  Xo.  10. 

Washington,  March  IS,  191S. 

The  question  has  been  raised  as  to  whether  the  Government  ought 
to  pay  any  part  of  the  expense  of  the  Xew  York  offices  (including 
salaries  of  officers  at  New  Y'ork)  of  railroad  companies,  except  to 
the  extent  that  such  expenses  are  on  account  of  operating  offices 
properly  located  at  New  York;  and,  on  the  same  principle,  as  to 
wdiether  the  Government  is  under  any  obligation  to  pay  the  expenses 
of  offices  of  any  of  the  companies  in  any  locality  devoted  to  financial 
and  corporate  matters  as  distinguished  from  matters  pertaining  to 
the  physical  operation  of  the  railroad  properties. 

Even  if  it  should  be  decided  t^liat  the  necessary  expenses  for  some 
of  the  purposes  for  which  such  New  York  offices,  and  to  some  extent 
similar  offices  at  other  places,  should  be  chargeable  against  the  Gov- 
ernment, it  seems  very  clear  that  in  many  instances  the  expenses  cur- 


361 

rently  so  charged  are  greatly  in  excels  of  what  is  necessary  to  accom- 
plish the  purposes  which,  according  to  a  reasonable  construction, 
AYould  be  chargeable  against  the  Government. 

Under  the  circumstances  it  is  desired  that  each  carrier  claiming 
that  any  such  expense  should  be  chargeable  against  the  Government 
shall  present  a  statement  showing  the  amount  of  this  expense  and 
what  amount,  if  any.  it  is  claimed  should  fairly  be  charged  to  the 
Government,  and  the  reasons  why  the  carrier  believes  such  expense  is 
so  chargeable.  And  on  and  after  April  1.  1918,  the  said  expense  shall 
cease  to  be  charged  against  operating  income,  except  in  so  far  as  the 
same  shall  be  expressly  authorized  after  the  facts  shall  have  been 
considered  as  provided  herein. 

W.  G.  McAdoo, 
D'ti-ertor  General  of  Railroads. 


CiRf  i"i-\R  No.  11. 

Washingtox,  March  23.  1918. 
With  reference  to  paragraph  3  of  General  Order  No.  9,  carriers? 
will  submit  to  the  regional  director  a  statement  marked  "Nothing  to 
report'*  for  each  month  in  Avhich  no  changes  covered  by  that  para- 
graph occur. 

With  reference  to  paragraph  4  of  General  Order  No.  9,  carriers 
will  submit  to  the  Director  General  and  also  to  the  regional  director 
a  statement  marked  "  Nothing  to  report  *'  for  each  month  in  which 
no  changes  covered  bv  that  paragraph  occur. 

W.  G.  McAdoo, 
Director  General  of  Bailroads. 


Circular  No.  \\L. 

Washington,  March  23,  1918. 

Unless  and  except  so  far  as  reasonable  showing  shall  be  made  to 
the  contrary,  the  Director  General  will  proceed  upon  the  theory  that 
the  totals  of  accounts  "cash."  "demand  loans  and  deposits,"  and 
"time  drafts  and  deposits."  appearing  on  the  railroad  company's 
books  at  the  close  of  business  December  31.  1917,  was  for  railroad 
purposes  and  is  therefore  subject  to  the  control  and  order  of  the 
Director  General.  If.  and  to  the  extent  that,  the  Director  General 
shall  find  it  appropriate,  in  the  mobilization  and  unification  of  the 
resources  of  the  railroad  companiei^,  to  transfer  any  such  cash  from 
the  control  of  the  officers  of  the  company,  full  accounting  provision 
will  of  course  be  made  for  the  protection  of  the  company's  rights. 

The  Director  General  will  entertain  any  applications  which  may 
be  made  to  him  to  show  that  any  portion  of  the  cash  on  hand  Decem- 


362 

ber  31  was  not  for  railroad  purposes  and  should  not  be  under  the 
Director  GeneraFs  control. 

Carriers  subject  to  Federal  control  must  not  make  disbursements 
out  of  the  cash  represented  by  the  accounts  above  designated  as  of 
December  31,  1917,  except  for  the  following  purposes: 

(a)  The  payment  of  interest  maturing  up  to  and  including  July  1, 
1918,  upon  obligations  of  the' railroad  company. 

(h)  The  payment  of  dividends  not  in  excess  of  regular  rate  of 
dividends  during  the  three  years  ended  June  30,  1917,  in  the  regular 
installments,  according  to  the  established  practice  of  the  company, 
payable  up  to  and  including  July  1,  1918. 

(c)  The  payment  for  materials  and  supplies  for  railroad  use  and 
for  other  expenses  of  operation.  Operation  to  include,  both  upon 
the  debit  and  credit  side,  joint  facility  rents,  car  hire,  and  all  items 
of  that  character  which  accrue  out  of  the  operation  of  the  property. 

(d)  Taxes,  including  war  taxes. 

(e)  Expenditures  for  permanent  improvements. 

Application  will  be  entertained  for  any  payments  which  the  car- 
rier may  desire  to  make  out  of  cash  on  hand  December  31,  1917,  for 
purposes  other  than  those  above  specified  or.  as  to  clauses  (a)  and 
(6).  at  dates  beyond  July  1,  1918. 

W.  G.  MgAdoo, 
Di  reef  or  General  of  Railroads. 


Circular  No.  13. 

Washington,  Mareh  ^-5,  1918. 
Will  you  please  give  the  following  information : 

1.  State  the  total  amount,  if  any,  of  Liberty  loan  3^'s,  and  sepa- 
rately of  Liberty  loan  4's,  bought  by  your  company  or  subsidiaries 
(^•)  as  investment,  (6)  for  employees. 

2.  State  aggregate  amount  now  held  of  each  of  said  issues  (a)  as 
investment,  (^)  for  employees. 

Of  amounts  of  each  issue  disposed  of  by  you,  other  than  bonds 
disposed  of  to  employees,  please  show  (a)  amounts  sold  in  the 
market,  or  through  brokers;  (&)  amounts  sold  at  private  sale  to  in- 
vestors; (c)  prices  realized  for  each  lot  sold  and  dates  of  sale. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 

ClRCULAJl   No.    14. 

Washtnoton,  March  26.  1918. 
To  all  railroad  offtc'tah  aiul  < mployees: 

A  section  for  the  Protection  of  Railroad  Property  and  property  of 
shippers  in  transit  has  been  established  in  the  Division  of  Law  by 


the  Director  General  to  enforce  rigorously  the  Federal  law  against 
theft  from  cars,  stations,  sidings,  and  wharves,  and  to  take  all  neces- 
sary measures  in  cooperation  with  carriers  to  prevent  loss  from  this 
cause,  which  in  past  years  has  been  enormous. 

Philip  J.  Doherty  is  hereby  appointed  manager  of  such  section. 

Full  cooperation  with  this  section  is  required  from  all  officers  and 
employees  of  the  railroads,  and  special  agents  or  secret  service  men 
employed  by  the  carriers  are  especially  required  to  cooperate  with 
this  section,  both  in  preventing  and  investigating  thefts,  making- 
arrests,  or  prosecuting  offenders,  and  railroad  attorneys  and  all  other 
officials  are  required  to  give  all  possible  aid. 

Anyone  having  knowledge  of  any  such  offense  should  report  the 
same  to  the  nearest  railroad  official  or  to  this  section  in  order  that 
indictment  of  the  guilty  parties  may  be  had  under  the  Federal  law 
which  carries  a  maximum  penalty  of  10  years'  imprisonment. 

Communications  should  be  addressed  to  Philip  J.  Doherty,  man- 
ager, section  for  Protection  of  Railroad  Property,  United  States 
Railroad  Administration,  Washington,  D.  C. 

Officers  and  employees  must  understand  that  all  property  being- 
transported  by  the  railroads  is  in  the  custody  of  the  United  States 
and  they  owe  an  especial  duty  to  guard  and  protect  the  same  and  to 
report  promptly  any  person  who  tampers  therewith ;  and  the  United 
States  looks  to  the  officers  and  employees  to  do  their  duty  in  this 
behalf. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  15. 

Washington,  March  29,  1918. 
The  Inspection  and  Test  Section  of  the  Division  of  Transportation 
is  hereby  created  and  Mr.  C.  B.  Young  is  appointed  manager,  with 
office  in  the  Southern  Railway  Building,  Washington,  D.  C. 

The  manager  of  the  Inspection  and  Te^t  Section  wall  have  charge 
of  the  test  and  inspection  of  materials  and  work  in  connection  with 
the  construction  of  standard  locomotives  and  cars. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  1G. 

[Corrected.] 

Washington,  April  i,  1918. 
The  Car  Repair  Section  of  the  Division  of  Transportation  is  here- 
by created,  and  Mr.  J.  J.  Tatum  is  appointed  manager,  with  office  in 
Southern  Railw^ay  Building,  Washington,  D.  C. 


364 

The  manager  of  the  Car  Repair  Section  will  supervise  the  con- 
dition of  and  repairs  to  freight  and  passenger  cars  in  all  existing  rail- 
way shops  and  at  ontside  points. 

W.  G.  McAdoo, 

Director  General  of  Railroads. 


CiRCIILAR   No.   17. 

Washixgtox,  March  JO,  191S. 

The  Director  General  is  of  opinion  that  the  Government  ought  not 
to  pay  the  salaries  and  office  and  traveling  expenses  of  officers  whose 
services  are  not  reasonably  required  for  the  operation  of  the  rail- 
roads. It  is,  of  course,  evident  that  in  the  past  the  railroad  com- 
panies, in  establishing  and  maintaining  their  staffs  of  officers,  have 
provided  not  only  for  the  actual  necessities  of  operation  but,  in  addi- 
tion, have  provided  {a)  for  financial  and  corporate  functions  beyond 
what  is  necessarily  connected  with  operation — for  example,  functions 
calling  for  chairmen  of  boards  of  directors  and  of  executive  com- 
mittees, etc.;  (/>)  for  other  activities  in  which  the  company  maj'  be 
lawfully  engaged  but  whose  operation  is  not  to  be  conducted  by  the 
Government;  {c)  for  operating  functions  wliich  were  naturnl  when 
railroads  were  operated  under  the  competitive  system  but  which  are 
unnecessary  under  existing  conditions — for  example,  traffic  functioins 
comiected  with  the  obtaining  of  traffic  rather  tlian  with  the  giving 
of  adequate  and  convenient  information  and  assistance  to  the  public; 
{d)  for  officers  Avho  have  practically  retired  from  service  and  whose 
salaries  have  been  continued  because  of  their  past  services  rather  than 
because  of  their  need  for  current  operation;  {e)  for  counsel  whose 
services  have  not  been  needed  for  the  conduct  of  ordinary  operating 
activities  of  the  company,  but  who,  to  a  large  extent,  if  not  entirely, 
have  devoted  themselves  to  matters  of  a  corporate  character — for 
example,  many  of  Avhom  are  now  devoting  themselves  to  the  problems 
in  connection  with  the  making  of  the  contracts  with  tlie  Government 
for  the  use  of  the  railroads. 

It  will  be  necessary  for  the  Government  to  make  a  careful  study  to 
determine  the  extent  to  which  operating  expenses  under  Government 
control  should  h^  relieved  of  charges  for  the  salaries  and  office  and 
traveling  expenses  of  officers  not  necessary  to  carry  ou  operating 
fimctions.  and  this  circular  is  to  give  notice  that  this  subject  is  and 
will  be  under  consideration,  and  tliat  in  clear  cases  the  Government 
may  charge  back  against  the  company  any  amounts  cliarged  into 
operating  expenses  on  and  after  April  1.  1918,  for  the  salaries  and 
office  and  traveling  expenses  of  officers  who  are  not  required  to  con- 
duct railroad  operation. 


365 

This  policy  will  not  affect  the  positions  of  any  oflficers  whom  the 
company  itself  may  desire  to  continue  to  pay  out  of  its  own  funds, 
but  who  are  not  necessary  to  railroad  operations. 

It  is  the  purpose  of  the  Government  to  carry  out  the  above  pol- 
icy in  a  reasonable  and  considerate  way  and  not  to  disturb  unneces- 
sarily the  operating  forces  of  the  railroads.  In  general,  it  is  antici- 
pated that  the  rank  and  file  of  railroad  officers  are  needed  for  the 
conduct  of  the  company's  business  and  that  practically  all  railroad 
employees,  as  distinguished  from  officers,  can  be  continued  in  serv- 
ice even  though  the  offices  in  which  they  now  work  may  no  longer 
be  continued.  It  is  believed  that  the  readjustment  of  operating 
charges  above  suggested  will  be  called  for  almost,  if  not  entirely, 
with  reference  to  general  officers  of  the  character  illustrated  by 
clauses  (a)  to  (e),  whose  functions  are  not  necessarily  connected 
with  operation. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  Xo.  18. 

Washington,  April  2^  1918. 

In  order  to  encourage  officers  and  employees  to  subscribe  to  the 
third  Liberty  loan,  carriers  may  take  such  amount  of  the  bonds  as 
may  be  necessary  to  care  for  such  subscriptions,  and  current  operat- 
ing revenues  may  be  used  as  far  as  necessary  in  paying  for  such 
bonds.  Officers  and  employees  may  be  permitted  to  pay  in  install- 
ments covering  a  period  of  not  exceeding  10  months.  In  case  they 
have  not  completed  j^ayments  on  prior  subscriptions,  and  in  order  to 
avoid  making  payments  on  both  subscriptions  at  the  same  time,  pay- 
ments on  new  subscriptions  may  begin  not  later  than  three  months 
from  now,  in  which  event  the  10  months  shall  date  from  the  time 
payments  shall  begin  on  the  new  subscription. 

The  regional  directors  have  been  requested  to  organize  regional 
committees  to  promote  these  subscriptions.  In  addition  it  is  hoped 
that  the  various  carriers  Avill  cooperate  heartily  with  the  Federal 
reserve  banks  in  organizing  committees  of  officers  and  employees  to 
canvass  the  matter. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  19. 

Washington,  April  3.,  1918. 
Director  General  McAdoo  announced  to-day  that  Angus  D.  Mc- 
Donald, vice  president  and  comptroller  of  the  Southern  Pacific  Co., 


366 

has  been  temporarily  detailed  to  Washington  as  acting  treasurer  for 
the  United  States  Railroad  Administration.  The  treasurer  will  be 
under  the  immediate  supervision  of  the  director  of  finance  and  pur- 
chases. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  20. 

Washington,  April  3,  1918. 
To  all  railroad  companies: 

My  attention  has  been  called  to  a  report  in  reference  to  my  General 
Order  No.  8,  in  which  it  is  stated  that  many  officials  of  the  railroads 
are  filing  strong  protests  with  the  Director  General  of  Railroads  be- 
cause of  the  position  he  has  taken  in  Official  Order  No.  8. 

It  is  only  just  that  I  should  say  that  I  have  not  received  any  pro- 
tests from  railroad  officials  because  of  Order  No.  8. 

I  feel  that  it  is  most  important  in  this  new  era  of  "  railroading  in 
America"  that  railroad  officials  and  railroad  employees  shall  not 
live  any  longer  in  an  atmosphere  of  suspicion  and  distrust.  I  ear- 
nestly desire  to  see  them  brought  together  upon  a  plane  of  mutual 
understanding  and  helpfulness  because  I  believe  that  it  is  to  the 
interest  of  both  that  this  shall  be  accomplished  and  because  I  know 
that  it  will  promote  the  efficient  and  safe  operation  of  the  railroads, 
and,  more  than  all,  that  it  will  help  the  country  immeasurably  in  this 
time  of  national  peril.  In  my  Order  No.  8  I  emphasized  my  desire 
that  the  old  enemities  of  the  past  should  be  obliterated  and  that  the 
common  peril  now  confronting  America  should  make  friends  and 
comrades  of  us  all. 

I  deeply  appreciate  the  assurances  of  loyalty  and  patriotic  sup- 
port I  have  been  receiving  from  railroad  employees  connected  with 
all  kinds  of  railroad  work  since  the  Government  took  possession  and 
control  of  the  railroads.  With  the  spirit  of  high  purpose  animating 
us  all,  from  the  humblest  to  the  highest,  I  know  that  we  can  do  a 
mighty  work  for  America,  and  that  we  can  win  this  war  for  liberty 
and  democracy. 

Please  bulletin  this  circular. 

W.  G.  McAdoo, 
Director  General  of  Raih'oods. 

Circular  No.  21. 

Washington,  April  8,  1018. 
The  Director  General  is  giving  consideration  to  the  general  prac- 
tice to  be  followed  in  the  matter  of  insurance  against  loss  or  damage 
by  fire  to  railroad  property  and  to  property  in  railroad  custody. 


367 

Pending  a  decision  on  this  question,  carriers  should  not  negotiate 
any  contracts  of  fire  insurance  covering  a  longer  period  than  lias 
heretofore  been  customary,  nor  in  any  event  covering  a  period  of 
more  than  one  year,  without  special  authority  from  this  office. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  22. 

Washington,  April  Jo\  1918. 
To  all  railroad  Gorn/pamAes : 

In  conformity  with  General  Order  No.  13,  Railway  Board  of 
Adjustment  No.  1  met  in  the  city  of  Washington  at  its  office,  room 
733,  Southern  Railway  Building,  Washington,  D.  C,  and  have  or- 
ganized and  are  ready  for  the  transaction  of  such  business  as  may 
come  before  it  as  provided  in  General  Order  No.  13. 

The  officers  and  members  of  this  board  are  as  follows:  Charles  P. 
Neill  (chairman),  L.  E.  Sheppard  (vice  chairman),  F.  A.  Burgess, 
W.  N.  Doak,  J.  W.  Higgins,  Albert  Phillips,  John  G.  Walber, 
E.  T.  Whiter. 

The  board  has  designated  the  following  dates  as  the  beginning  of 
each  of  its  regular  monthly  meetings  during  the  remaining  portion 
of  the  year  1918:  May  7.  June  4,  July  8,  August  G,  September  3, 
October  8,  No\'ember  7,  December  3. 

Attention  is  called  to  the  provisions  of  the  memorandum  of  under- 
standing annexed  to  General  Order  No.  13,  as  follows : 

Article  10  provides  the  manner  in  which  controversies  will  be  sub- 
mitted to  the  board  through  the  Division  of  Labor  of  the  United 
States  Railroad  Administration.  Every  case  submitted,  except  the 
unfinished  business  of  the  commission  of  eight,  which  is  transferred 
to  this  board  as  provided  in  article  6,  should  be  accompanied  by 
evidence  that  its  submission  is  approved  by  the  chief  operating  officer 
of  the  railroad  upon  which  the  controversy  has  arisen,  and  by  the 
chief  executive  officer  of  the  organization  concerned.  Where  two  or 
more  organizations  are  jointly  concerned,  the  submission  should  be 
joint,  if  practicable. 

Article  11  expressly  precludes  a  consideration  by  the  Railway 
Board  of  Adjustment  No.  1  of  any  matter  unless  officially  referred 
to  it  in  the  manner  prescribed  in  the  memorandum  of  understanding. 

Article  14  requires  that  in  each  case  an  effort  should  be  made  to 
present  a  joint  concrete  statement  of  facts  as  to  any  controversy. 
Statement  of  fact,  whether  joint  or  separate,  should  be  sufficiently 
comprehensive  to  give  an  understanding  of  the  controversy  that  the 


368 

board  is  called  upon  to  decide.  Where  briefs  or  additional  evidence 
are  to  follow,  notice  thereof  should  accompany  the  submission. 
Where  additional  matter  is  to  follow  the  submission,  the  cas^  will 
not  be  transmitted  to  the  Board  of  Adjustment  by  the  Division  of 
Labor  until  the  additional  data  shall  have  been  received. 

It  is  requested  that  three  copies  of  the  joint  concrete  statement  be 
filed  with  the  Division  of  Labor  for  matter  of  record  and  for  the 
information  of  the  board.  Briefs  and  documentary  evidence  need 
not  be  furnished  in  duplicate,  but  whenever  possible  should  be  at- 
tached to  the  three  copies  of  the  joint  statement. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  23. 

Washington,  April  IS,  1918. 

1.  For  the  administration  of  the  coastwise  steampship  lines,  under 
control  of  the  United  States  Railroad  Administration,  the  Coast- 
wise Steamship  Advisory  Committee  is  hereby  created,  with  office  at 
165  Broadway,  New  York  City. 

2.  Mr.  L.  J.  Spence  is  appointed  chainnan,  with  authority  to  form 
the  Coastwise  Steamship  Advisory  Committee  from  the  officers  of 
the  following  steamship  lines :  Clyde  Steamship  Co.,  Mallory  Steam- 
ship Co.,  Merchants  &  Miners'  Transportation  Co.,  Ocean  Steamship 
Co.,  Old  Dominion  Steamship  Co.,  Southern  Pacific  Steamship 
Lines,  Southern  Steamship  Co. 

3.  The  chairman  of  the  Coastwise  Steamship  Advisory  Commit- 
tee will  report  to  the  manager.  Marine  Section,  of  the  Division  of 
Transportation,  and  will  exercise  supervision  and  direction  of  all 
coastwise  lines  under  control  of  the  United  States  Railroad  Admin- 
istration. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


CiRCULAK    No.    24. 

Washington,  ApHl  22,  1918. 
Shortly  after  possession  and  control  of  the  railroads  of  the  United 
States  were  assumed  by  the  Government,  I  appointed  a  Railroad 
Wage  Commission  for  the  purpose  of  making  a  thorough  investiga- 
tion of  the  wages  paid  to  all  railroad  employees,  whether  members 
of  labor  organizations  or  not.  I  announced  that  if,  as  a  result  of  that 
investigation,  an  increase  of  wages  was  made  by  the  Director  Gen- 
eral, such  increase  would  become  eifective  us  of  January  1,  1918. 


369 

The  task  confronting  the  Raih-oad  Wage  Commission  was  greater 
in  magnitude  than  any  task  of  a  similar  character  ever  undertaken. 
The  commission  immediately  applied  itself  to  the  work  with  great 
energy  and  Avith  unremitting  labor  to  a  study  of  the  large  and  com- 
plex questions  involved.  In  matters  of  such  magTiitiide  adequate 
time  is  essential  to  intelligent  consideration  and  wise  conclusions. 

The  connnission  has  informed  me  that  it  expects  to  submit  its  re- 
port on  my  return  to  Washington  upon  the  conclusion  of  the  present 
Liberty  loan  campaign.  May  4.  I  shall  promptly  review  the  report 
of  the  commission  and  render  a  decision  upon  its  findings  and  recom- 
mendations. Meanwhile,  no  employee's  interest  is  being  hurt  or 
prejudiced,  becau^e  whateA-er  increases  may  be  granted  will  have 
accumulated  in  the  form  of  savings  and  will  not  have  been  spent  in 
the  meantime  as  might  otherwise  have  been  the  case. 

I  hope  that  every  railroad  employee  in  the  United  States  will  lend 
all  the  money  he  can,  consistently  with  his  individual  circumstances, 
to  his  Government  by  buying  Liberty  bonds;  they  pay  4^  per  cent 
interest  per  annum  and  are  the  safest  investinent  in  the  world — as 
safe  as  the  money  of  the  United  States  and  safer  than  deposits  in 
banks.  In  lending  your  money  to  the  Government  you  not  only  save 
the  money  for  yourselves,  but  you  help  every. gallant  American  sol- 
dier and  sailor  wlio  is  fighting  in  this  war  now  to  save  your  lives  and 
libeities  and  to  make  the  world  safe  for  democracy. 

W.  G.  McAdoo, 
WiiU'Ctoi'  (Teneral  of  Railroads. 


C1RCUL-A.K  No.  25. 

Washington,  May  8,  191S. 

Each  carrier  shall  at  once  make  a  report  in  duplicate,  sending  one 
original  to  the  director  of  the  Division  of  Capital  Expenditures  and 
the  other  original  to  the  regional  director,  giving  full  advice  as  to 
Avhether  the  carrier  is  proceeding  Avith  all  practicable  expedition  to 
construct  and  put  into  operation  all  additions  and  betterments  on  its 
lines  which  may  have  been  approved  by  the  director  of  the  Division 
of  Capital  Expenditures,  and  all  equipment  which  may  have  been  so 
approved  and  Avhich  the  carrier  may  be  constructing  in  its  own  sliops. 

If  a  carrier  shall  not  haA^e  commenced  any  project  so  approved, 
or,  having  commenced  it,  shall  not  be  prosecuting  it  vigorously  to 
completion,  the  carrier  shall  specify  in  the  above-mentioned  report 
each  such  project  and  state  fully  the  reasons  why  it  has  not  been 
commenced  or  why.  if  commenced,  it  is  not  being  vigorously  prose- 
cuted to  completion. 

105889°— 19 24 


370 

If  a  carrier  shall  not  haAe,  on  hand  or  arranged  for,  the  necessary 
funds  to  construct  and  put  into  operation  without  delay  all  the 
additions  and  betterments  which  have  been  so  approved,  and  if  it 
anticipates  that  this  condition  is  likely  to  delay  any  of  such  work, 
the  carrier  shall  in  addition  make  a  report  at  once  to  the  director 
of  the  Division  of  Finance,  stating  its  financial  needs  in  order  to 
enable  it  to  complete  all  such  work  expeditiously. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  26. 

Washington,  D.  C,  May  20,  1918. 
Walker  D.  Hines,  heretofore  assistant  to  the  Director  General,  is 
hereby  appointed  Assistant  Director  General  of  Railroads,  effective 
this  date. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  27. 

Washington,  May  £o,  191S. 
Effective  June  1,  1918,  Mr.  Theodore  H.  Price  is  appointed  actuary 
of  the  United  States  Railroad  Administration.  His  duties  will  be  to 
compile  and  analyze  statistics  and  make  reports  concerning  the  vari- 
ous economic  problems,  connected  with  the  functions  of  the  Railroad 
Administration,  which  will  be  referred  to  him  by  the  Director  Gen- 
eral or  by  members  of  the  staff. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 

Circular  No.  28. 

Washington,  D.  C,  June  1,  1918. 

Effective  this  date,  the  Allegheny  Region  is  hereby  created,  and  Mr. 
Charles  H.  Markham  is  appointed  regional  director,  with  office  in 
Broad  Street  Station,  Philadelphia. 

The  Allegheny  Region  will  comprise  the  following  lines,  which  are, 
for  the  purpose,  released  from  the  eastern  region :  Atlantic  City  Rail- 
road; Baltimore  &  Ohio  Railroad  (east  of  and  including  Parkersburg 
and  Pittsburgh) ;  Be&semer  &  Lake  Erie  Railroad;  Central  Railroad 
of  Xew  Jersey:  Cumberland  Valley  Railroad;  Coal  &  Coke  Railway; 
Hudson  &  Manhattan  Railroad;  New  York,  Philadelphia  &  Norfolk 


371 

Railroad;  Pennsylvania  Railroad  (east  of  Erie  and  PittsSburgh,  in- 
cluding terminals  at  Pittsburgh)  ;  Philadelphia  &  Reading  Railway; 
Pittsburgh  &  Lake  Erie  Railroad;  West  Jersey  &  Seashore  Railroad  : 
Western  Maryland  Railway. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Supplement  No.  1  to  Circular  Xo.  "28. 

Washington,  Jidy  10,  191S. 
In  addition  to  the  railroads  named  in  Circular  No.  28,  the  follo^v 
ing  railroads  are  included  in  the  Allegheny  Region : 
Buffalo  &  Susquehanna  Railroad  Corporation. 
Cherry  Tree  8c  Dixonville  Railroad. 
Cumberland  &  Pennsylvania  Railroad. 
Huntingdon  &  Broad  Top  Mountain  Railroad. 
Long  Island  Railroad. 
Monongahela  Railway. 
Philadelphia  Belt  Line. 

Pittsbui-g,  Chartiers  &  Youghiogheny  Railroad. 
Staten  Island  Rapid  Transit  Railway. 
Union  Railroad  (Pennsylvania). 
Washington  Terminal  Railroad. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  29. 

Washington,  D.  C,  June  i,  1918. 
Effective    this    date,    Mr.   B.  L.   Winchell    is    hereby    appointed 
regional  director,  Southern  Region,  with  office  in  Healey  Building, 
Atlanta,  Ga.,  succeeding  Mr.  C.  H.  Markham,  who  becomes  regional 
director  of  the  Alleghenv  Region. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  30. 

Washington,  D.  C,  June  1, 1918. 

Effective  this  date,  the  Pocahontas  Region  is  hereby  created,  and 
Mr.  N.  D.  Maher  is  appointed  regional  director,  with  office  in  Roa- 
noke, Va. 

The  Pocahontas  Region  will  comprise  the  following  lines,  which 
are,  for  the  purpose,  released  from  the  Eastern  Region :  Chesapeake 


372 

&  Ohio  Railway,  east  of  Louisville,  Ky. ;  Columbus  and  Cincinnati, 
Ohio,  including  the  Chesapeake  &  Ohio  Northern;  Norfolk  & 
Western  Eaihvay;  Virginian  Railway. 

Tlie  terminals  of  all  railroads  at  Norfolk,  Portsmouth,  and  New^- 
port  News,  Va.,  and  the  Norfolk  &  Portsmouth  Belt  Railways  are 
assigned  to  the  Pocahontas  Region. 

W.  G.  McAdoo, 
Director  Geiwral.  of  Railroads. 


Supplement  No.   1  to  Circular  No.  30. 

Washington,  July  10,  WIS. 
In  addition  to  the  railroads  named  in  Circular  No.  30,  the  follow- 
ing railroad  is  included  in  the  Pocahontas  Region:     Ashland  Coal  & 
Iron  Railway. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  31. 

Washington,  June  1,  1918. 
To  all  railroads  and  railroad  employ-ces : 

In  conformity  with  Ai'ticle  VII  of  General  Order  No.  27,  the 
Board  of  Railroad  Wages  and  Working  Conditions  have  organized 
and  are  ready  for  the  transaction  of  such  business  as  may  properly 
come  before  it.  The  officers  and  members  of  this  board  are  as  follows : 
G.  H.  Sines,  chairman,  F.  F.  Gaines,  vice  chairman,  J,  J.  Dermody, 
C.  E.  Lindsay,  W.  E.  Morse,  A.  O.  Wharton. 

The  offices  of  the  Board  of  Railroad  Wages  and  Working  Condi- 
tions are  on  the  fourth  floor.  Premier  Apartment  Building,  No.  718 
Eighteenth  Street  Northwest,  near  Pennsylvania  Avenue,  AVashing- 
ton,  D.  C. 

It  shall  be  the  duty  of  the  board  to  hear  and  investigate  matters 
presented  by  railroad  employees  or  their  representatives  affecting, 

(1)  Inequalities  as  to  wages  and  working  conditions,  whether  as 
to  individual  employees  or  classes  of  employees. 

(2)  Conditions  arising  from  competition  with  employees  in  other 
industries. 

(3)  Rules  and  working  conditions  for  the  several  classes  of  ou- 
ployees,  either  for  the  country  as  a  whole  or  for  different  parts  of  the 
country. 

The  board  shall  also  hear  and  investigate  other  matters  affecting 
wages  and  conditions  of  employment  referred  to  it  by  the  Director 
General. 


373 

This  board  shall  be  solely  a)i  advisoi y  body  and  shall  submit  it' 
lecommendations  to  tlie  Director  General  for  his  detennination. 

W.  G.  McAdoo, 

l>'n■^  <toi'  Gencrol  of  R(i(lro(uLs. 


CiRCrXAR  Xo.  '6-1. 

'WaSHI^'GTON,  J:UiU    11,  191S. 

The  name  "■  Division  of  Transportation "  is  hereby  changed  to 
"  Division  of  Operation,"  and  Carl  E.  Gray,  heretofore  director. 
Division  of  Transj)ortat.ion,  is  hereby  appointed  director.  Division  of 
Operation,  effective  this  date. 

W.  G.  McAdoo, 
Dhyctor  General  of  Railroads. 


Circular  N<».  3:3. 

Washington.  Jmu  lU  1918. 
Effective  this  date  the  Northwestern  Region  is  hereby  created,  and 
Mr.  R.  H.  Aishton  is  appointed  regional  director,  witli  office  in 
Chicago,  111.  The  Northwestern  Region  Avill  comprise  the  following 
lines:  Chicago  &  Northwestern  Railway:  Chicago,  St.  Paul,  Minne- 
apolis &  Omaha  Railway ;  Chicago  Great  Western  Railroad :  Chicago, 
Milwaukee  &  St.  Paul  Railway:  Great  Northern  Railway:  Minne- 
apolis &  St.  Louis  Railroad;  Minneapolis,  St.  Paul  &  Sault  Ste. 
Marie  Railway:  Northern  Pac-ific  Railway:  Oregon- Washing-ton 
Railroad  &  Navigation:  Southern  Pacific  Lines  (north  of  Ashland, 
Oreg.j:  Spokane,  Portland  tt  Seattle  Railway:  Spokane  Inter- 
national Raiiwaj'. 

W.  G.  McAdoo. 
Director  GtneifiJ  of  Railroads. 


SrprLE^iENT  No.  1  TO  Circulak  No.  3;3. 

Washington,  July  10,  1918. 
In  addition  to  the  railroads  named  in  Circular  No.  33,  the  foUow 
ing  railroads  are  included  in  the  Northwestern  Region: 


Baltimore    &,     C)hio    Chicago     Terminal 

R.  R. 
Belt  Railway  of  Chicago. 
Butte,  Anaconda  <fe  Paritic  Ry.  Co. 
Calumet  AVestern  Ry. 
Camas  Prairie  R.  R. 
Chicago  Heights  Terminal  Transfer  R.  R. 


Chicago  Junction  Ry. 

Chicago,  Milwaxikee  &  G&vy  R.  R. 

Chicago  River  &  Indiana  R.  R. 

Chicago  Union  Station  Co. 

Chicago  &  Western  Indiana  R.  R. 

Copper  Range  R.  R. 

i)es  Moines  Union  "Rx. 


374 


Des  Moines  Western  Ry. 

Duluth  &  Iron  Range  R.  R. 

Duluth,  Missabe  &  Northern  Ry. 

Duluth,  South  Shore  &  Atlantic  Ry. 

Elgin,  Joliet  &  Eastern  Ry . 

Englewood  Connecting  Ry. 

Escanaba  &  Lake  Superior  R.  R. 

Ft.  Dodge,  Des  Moines  &  Southern  R.  R. 

Green  Bay  &  "Western  R.  R. 

Indiana  Harbor  Belt  R.  R. 

Iowa  Transfer  Rj- . 

I>ake     Superior     Terminal    &     Transfer 

Ry.  Co. 
Mineral  Range  R.  R. 
Minneapolis  Belt  Line  Co. 


Minneapolis  &  Eastern  Ry . 

Minnesota  Transfer  Ry. 

Ontonagon  R.  R. 

Oregon  Electric  Ry. 

Pacific  Coast  R.  R. 

Port  Townsend  &  Puget  Sound  Ry. 

St.  Charles  Air  Line. 

St.  Paul  Bridge  &  Terminal  Ry. 

St.  Paul  Union  Depot  Co. 

Sioux  City  Terminal  Ry . 

South  Chicago  &  Southern  R.  R. 

Stock  Yards  Terminal  Ry.  Co.  of  St.  I'avl. 

Union  Stock  Yards  Co.  of  Omaha. 

Waterloo,  Cedar  Falls  &  Northern  Ry. 

Waupaca-Green  Bay  Ry. 

W.  G.  McAdoo, 

Director  General  of  Railroads. 


Circular  No.  34, 

Washington,  June  11,  1918. 
Effective  this  date,  the  Central  Western  Region  is  hereby  created, 
and  Mr.  Hale  Holden  is  appointed  regional  director,  with  office  in 
Chicago,  111.  The  Central  Western  Region  will  comprise  the  following 
lines:  Atchison,  Topfeka  &  Santa  Fe  Railway;  Chicago,  Rock  Island 
&  Pacific  Railway  (except  St.  Lonis  to  Kansas  City ;  lines  east  of  El 
Reno ;  lines  El  Reno  to  Memphis  and  branches,  and  south  of  Chick- 
asha)  ;  Chicago,  Peoria  &  St.  Louis  Railroad;  Chicago  &  Alton  Rail- 
road ;  Chicago  &  Eastern  Illinois  Railroad ;  Chicago,  Terre  Haute  & 
Southeastern  Railway;  Chicago,  Burlington  &  Quincy  Railroad; 
Colorado  &  Southern  Railway ;  Denver  &  Rio  Grande  Railroad ;  El 
Paso  &  Southwestern  System;  Illinois  Central  Railroad  (north  of 
Cairo  and  Paducah)  :  Los  Angeles  &  Salt  Lake  Railroad ;  Northwest- 
ern Pacific  Railroad ;  Oregon  Short  Line  Railroad ;  Quincy,  Omaha 
&  Kansas  City  Railroad  Southern  Pacific  Lines  (west  of  El  Paso  and 
Ogden,  except  north  of  Ashland,  Oreg.)  ;  St.  Joseph  &  Grand  Island 
Railway:  Union  Pacific  Railroad;  Western  Pacific  Railroad. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Stjpplement  No.  1  to  Circular  No.  34. 

Washington,  July  10,  191S. 
In  addition  to  the  railroads  named  in  Circular  No.  34,  the  follow- 
ing railroads  are  included  in  the  Central  Western  Region: 


Arizona  Eastern  R.  R.  Co. 
Atchison  &.  Eastern  liridge  Co. 
Atchison  L^nion  Depot  &.  R.  R.  Co. 


Colorado  Springs  &   Cripple  Creek   Dis- 
trict Ry. 
Denver  Union  Terminal  Ry. 


375 


Evansville  &  Indianapolis  R.  R. 
Kansas  City  Connecting  R.  R. 
Keokuk  Union  Depot  Co. 
Leavenworth  Depot  &  R.  R.  Co. 
Ogden  Union  Railway  &  Depot  Co. 
Pan  Handle  &  Santa  Fe  Ry. 


Peoria  &  Pekin  Union  Ry. 

Pueblo  Union  Depot  &  R.  R.  Co. 

Riverside,  Rial  to  &  Pacific  R\-. 

Salt  Lake  City  Union  Depot  &  R.  R.  Cu. 

Toledo,  Peoria  &  Western  Ry. 

Wichita  Union  Terminal  Ry. 


The  following  railway  is  transferred  from  the  Southwestern 
Region  to  the  Central  Western  Region:  Wabash  Railway  (Lines 
West  of  the  Mississippi  River). 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  35. 

Washington,  Jwne  11, 1918. 
Effective  this  date,  the  Southwestern  Region  is  hereby  created,  and 
Mr.  B.  F.  Bush  is  appointed  regional  director,  with  office  in  St. 
Louis,  Mo.  The  Southwestern  Region  will  comprise  the  following- 
lines:  Fort  Worth  &  Denver  City  Railway;  Fort  Worth  &  Rio 
Grande  Railway;  Gulf,  Colorado  &  Santa  Fe  Railway;  Gulf  Coast 
Lines;  Galveston,  Harrisburg  &  San  Antonio  Railway;  Houston  & 
Texas  Central  Railroad;  Houston,  East  &  West  Texas  Railway;  In- 
ternational &  Great  Northern  Railroad ;  Kansas  City  Southern  Rail- 
waj';  Louisiana  &  Arkansas  Railway;  Louisiana  Railway  &  Navi- 
gation; Louisiana  Western  Railroad;  Midland  Valley  Railroad;  Mis- 
souri Pacific  Railway  System;  Missouri,  Kansas  &  Texas  Lines;  Mor- 
gan's Louisiana  &  Texas  Railroad  &  Steamship;  Rock  Island  Lines 
(south  of  Chickasha,  El  Reno  to  Memphis  and  branches,  and  St. 
Louis  to  Kansas  City)  ;  St.  Louis-San  Francisco  Railroad;  St.  Louis 
Southwestern  Railway ;  San  x^ntonio  &  Aransas  Pass  Railway ;  Texas 
&  Pacific  Railway;  Texas  &  New  Orleans  Railroad;  Wabash  Rail- 
road (St.  Louis  to  Kansas  City  and  Omaha)  ;  Wichita  Falls  &  North- 
western Railway;  Texas  Midland  Railroad;  Wichita  Valley  Railway. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Supplement  No.  1  to  Cikcular  No.  35. 

Washington,  July  10,  1918. 
In  addition  to  the  railroads  named  in  Circular  No.  35,  the  follow- 
ing railroads  are  included  in  the  Southwestern  Region: 

Abilene  &  Southern  Ry.  Fort  Worth  Union  Passenger  Station  Co. 

Alton  &  Southern  Ry.  Galveston,  Houston  &  Henderson  R.  R. 

East  St.  Louis  National  Stock  Yards  Co.  Houston  Belt  &  Terminal  Ry. 

East  St.  Louis  &  Suburban  Ry.  Houston  &  Brazos  Valley  Ry. 

Fort  Worth  Belt  R.  R.  Illinois  Terminal  R.  R. 


376 


Joplin  Union  Depot  Co. 

Kansas  City,  Mexico  &  Orient  Tines. 

Litchfield  &  Madison  Ry. 

Missouri  &  Illinois  Bridge  &  Belt  Ry. 

Oklahoma  Belt  Ry. 

St.  Joseph  Belt  Ry. 

St.  Joseph  Union  Depot  Co. 

St.  Louis  &  Belleville  Electric  Ry. 

St.  Louis  Merchants  Bridge  Terminal  Ry. 

St.  Louis  National  Stock  Yard  Co. 

St.  Louis  &  O'Fallon  Rv. 


St.  Louis,  Troy  &  Easton  R.  R. 
San  Antonio,  Uvalde  &  Gulf  R.  R. 
Southern  Illinois  &  Missouri  Bridge  Co. 
Terminal    Railroad    Association    of    St. 

Louis. 
Texas  Midland  R.  R. 
Trans-Mississippi  Terminal  R.  R. 
Union  Terminal  Co.  of  Dallas. 
Vicksburg,  Shreveport  &  Pacific  Ry. 
West  Tulsa  Belt  Ry. 
Wiggins  Ferry  Co. 


The  following  railway  is   transferred   from    the   Central   Western 
Region  to  the  Southwestern  Region: 

Chicago,  Rock  Island  &  Pacific  Railway  (Tucumcari,  X.  M., 
to  El  Reno,  Okla.;  south  of  Harrington,  Kansas,  to  Chick- 
asha,  Okla.,  including  branches). 

W.  G.  McAdoo, 
Director  General  of  BailrociS. 


Circular  No.  36. 

AVashington,  D.  C,  June  12, 191 S. 

I  am  deeply  gratified  to  learn  of  the  large  number  of  railroad  em- 
ployees who  have  subscribed  for  the  third  issue  of  Liberty  bonds,  i'.nd 
I  desire  to  express  my  appreciation  of  the  patriotism  and  loyalty 
they  have  exhibited  in  this  time  of  national  peril. 

A  large  number  of  railroad  employees  will  receive  substantial 
amounts  of  back  payments  resulting  from  the  increase  of  wages  au- 
thorized by  General  Order  No.  27.  These  payments  will  be  made  to 
employees  by  the  respective  railroads  as  promptly  as  the  amounts  for 
each  of  the  months  from  January  to  June  can  be  computed. 

I  earnestly  urge  upon  every  railroad  employee  who  has  thus  se- 
cured increases  in  pay  for  the  future  and  who  will  receive  back  pay- 
ments from  January  1,  1918,  to  invest  as  much  as  he  possibly  can  in 
the  war  savings  stamps  issued  by  the  United  States  Treasuiy.  These 
war  savings  stamps  are  not  only  an  investment  of  the  safest  and  best 
quality,  but  they  accnie  interest  at  the  rate  of  4  per  cent  per  annum, 
compounded  quarterly.  Every  man  Avho  invests  in  war  savings 
stamps  can  get  his  money  back  in  full  from  the  Goveniment  at  any 
time  upon  10  days'  notice,  and  with  interest  at  a  rate  somewliat  less 
than  4  per  cent,  if  he  recjuests  payment  before  the  maturity  of  the 
stamps.  If  he  keeps  the  stamps  until  maturity — namely,  until  the 
1st  of  January,  1923,  he  will  receive  his  money  back  in  full  with  inter- 
est added  at  the  rate  of  4  per  cent  per  annum,  compounded  quarterly. 

Our  heroic  boys  are  now  actually  fighting  in  the  battles  which  are 
raging  along  the  western  front  in  France.     They  are  dying  for  us, 


377 

irivinir  their  lives  freely  and  heroically  that  the  liberties  of  mankind 
shall  be  preserved.  Every  man  who  buys  war  savings  stamps  is  help- 
ing these  boys  because  he  is  helping  to  keep  his  (Tovernment  provided 
Avith  the  money  Avhich  it  must  have  to  enable  those  boys  to  fight  vic- 
toriously or  to  die  gloriously.  I  hope  every  railroad  employee  who 
can  do  so  will  invest  to  the  limit  of  his  means  and  ability  in  these 
war  savings  stamps  of  the  United  States  Government. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


CiRCITLAR  Xo.  37. 

Washington,  June  12^  191S. 
Effective  June  1.  1918,  Oscar  A.  Price,  heretofore  private  secretary 
to  the  Director  General,  is  hereby  appointed  assistant  to  the  Director 
General  of  Railroads. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


CiRCULAB  Xo.  38. 

AVashixgton.  D.  C'..  -hiii,  21, 191S. 
To  all  railroad  companies : 

In  conformity  with  General  Order  Xo,  -liK  Eaihvay  Board  of  Ad- 
justment Xo.  -1  met  in  the  city  of  Washington  at  its  office,  Room  702, 
Southern  Railway  Building.  Washington,  D.  C.  and  have  organized 
and  are  ready  for  the  transaction  of  such  business  as  may  come  before 
it  as  provided  in  General  Order  Xo.  29. 

The  officers  and  members  of  this  board  as  as  follows: 

E.  F.  Potter,  chairman.  W.  S.  Murrian. 

F.  J.  McXulty.  vice  chair-  W.  H.  Penrith, 
man.  Geo.  W.  Pring. 

A.  C.  Adams.  E.  A.  Sweeley. 

H.  J.  Garr.  R.  J.  Turnbull. 

Otto  E.  Hoard.  G.  C.  Van  Domes. 
F,  H.  Knight. 

The  board  has  designated  the  following  date.s  as  the  beginning  of 
each  of  its  regular  monthly  ineetings  during  the  remaining  portion 
of  the  year  1918 : 

July  2.  September  3.  November  5. 

August  6.  October  1.  Decembers. 

Attention  is  called  to  the  provisions  of  the  memorandum  of  under- 
standing annexed  to  General  Order  Xo.  29,  as  follows: 

Article  10  provides  the  manner  in  which  controversies  will  be  sub- 
mitted to  the  board  throu<rh  the  Division  of  Labor  of  the  United 


378 

States  Railroad  Administration.  Every  case  submitted  should  be 
accompanied  by  evidence  that  its  submission  is  approved  by  the  chief 
operating  officer  of  the  railroad  upon  which  the  controversy  has  arisen 
and  by  the  chief  executive  officer  of  the  organization  concerned. 
Where  two  or  more  organizations  are  jointly  concerned  the  submission 
should  be  joint,  if  practicable. 

Article  11  expressly  precluded  a  consideration  by  the  Railway 
Board  of  Adjustment  No.  2  of  any  matter  unless  officially  referred  to 
it  in  the  manner  prescribed  in  the  memorandum  of  understanding. 

Article  14  requires  that  in  each  case  an  effort  should  be  made  to 
present  a  joint  concrete  statement  of  facts  as  to  any  controversy. 
Statements  of  facts,  whether  joint  or  separate,  should  be  sufficiently 
comprehensive  to  give  an  understanding  of  the  controversy  that  the 
board  is  called  upon  to  decide.  Where  briefs  or  additional  evidence 
are  to  follow,  notice  thereof  should  accompany  the  submission.  Where 
additional  matter  is  to  follow  the  submission,  the  case  will  not  be 
transmitted  to  the  Board  of  Adjustment  by  the  Division  of  Labor 
until  the  additional  data  shall  have  been  received. 

It  is  requested  that  three  copies  of  the  joint  concrete  statement  be 
filed  with  the  Division  of  Labor  for  matter  of  record  and  for  the 
information  of  the  board.  Briefs  and  documentary  evidence  need 
not  be  furnished  in  duplicate  but,  whenever  possible,  should  be  at- 
tached to  the  three  copies  of  the  joint  statement. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  39. 

Washington,  July  3,  1918. 

Order  No.  13  created  Railroad  Board  of  Adjustment  No.  1,  to 
which  Board  all  disputes  between  railway  employees,  members  of 
certain  organizations,  and  the  several  railroads,  that  can  not  be  satis- 
factorily adjusted,  are  to  bo  referred  for  investigation  and  disposition. 
Order  No.  29  creating  Railroad  Board  of  Adjustment  No.  2  carries 
with  it  a  like  assignment  of  duties.  Where  controversies  are  not 
amicably  adjusted  and  where  they  do  not  fall  within  the  provisions 
of  General  Orders  13  and  29,  they  are  to  be  referred  to  the  Director, 
Division  of  Labor,  United  States  Railroad  Administration. 

My  attention  has  been  called  to  an  arbitration  held  by  agreement 
between  the  employes  and  officials  of  a  certain  railroad  to  adjust 
matters  in  controversy  in  a  different  manner  than  that  prescri])ed 
herein. 

In  order  that  uniformity  of  application  of  decisions  affecting  labor 
matters  may  b(^  preserved,  no  agreement  should  be  reached  between 


379 

officials  and  employes  of  any  railroad  to  adjust  their  differences  in 

any  other  manner  than  prescribed  in  Orders   13   and  29,   and  by 

other  orders  hereafter  issued. 

W.  G.  McAdoo, 

Director  General  of  Railroads. 


Circular  No.  40. 

Washington,  July  3,  191S. 

Effective  this  date  Mr.  T.  C.  Powell  will,  in  addition  to  his  duties 

as  Manager  of  Inland  Traffic,  War  Industries  Board,  act  as  Special 

Representative  of  the  United  States  Railroad  Administration  ^^ith 

that  Board. 

W.  G.  McAdoo, 

Director  General  of  Railroads. 


Circular  No.  41. 


The  following  railroads  are  added 

Akaon  &.  Barberton  Belt  R.  R. 

Aki-on  Union  Passenger  Depot  Co. 

Boston  Terminal  Co. 

Brooklyn  Eastern  District  Terminal  R.  R. 

Buffalo  Creek  R.  R. 

Central  Union  Depot  of  Cincinnati. 

Dayton  &  Union  R.  R. 

Dayton  Union  Ry. 

Detroit,  Bay  City  &  Western  Ry. 


Washington,  July  10,  1918. 
to  the  Eastern  Region: 

Detroit  Terminal  R.  R. 

Indianapolis  Union  Ry. 

Jay  Street  Terminal  (New  York). 

Kentucky  &  Indiana  Terminal  R.  R. 

New  York  Dock  Co.  R.  R. 

Toledo  Terminal  R.  R. 

Troy  Union  R.  R. 

Zanesville  Terminal  R.  R. 

W.  G.  McAuoo, 
Director  General  of  Railroads. 


Circular  No.  42. 

Washington,  July  10,  1018. 
The  following  railroads  are  added  to  the  Southern  Region: 


Mississippi  Central  R.  R. 

New  Orleans  Great  Northern  R.  R. 

Winston-Salem  Southbound  Ry.  Co. 


Alabama  &.  Yicksburg  Ry. 
Bii-mingham  &  Northwestern  Ry. 
Memphis  Union  Station  Co. 

The  following   railway   is   transferred   from    the   Southwestern    to 
the  Southern  Region: 

St.  Louis-San  Francisco  Ry.  (between  Memphis  and  Birmingluun). 

W.  G.  McAdoo, 
Director  General  of  Railroads . 


380 

Circular  No.  43. 

Washington,  July  17,  19 IS. 
To  officers  and  employees  of  railroads  under  Federal  control: 

A  large  number  of  railroad  men,  by  the  purchase  of  Liberty  bonds, 
are  now  holding  an  investment  security  for  the  first  time.  A  large 
majority  of  the  bonds  so  held  are  coupon  bonds.  Coupon  bonds 
must  be  carefully  guarded  against  loss  or  theft.  They  are  payable 
to  bearer.  If  they  are  lost,  payment  of  them  can  not  be  stopped, 
and  they  can  not  be  replaced  by  the  Treasury  Department. 

Coupon  bonds  are  suitable  for  investors  who  possess  safe-deposit 
boxes.  Registered  bonds  are  provided  to  meet  the  needs  of  persons 
who  have  no  safe  places  of  deposit. 

Registered  bonds  are  issued  in  the  name  of  the  0A\Tier,  which 
appears  on  the  face.  The  interest  is  paid  by  United  States  check, 
drawn  to  the  order  of  the  owner,  and  sent  him  by  mail.  If  a  regis- 
tered bond  is  stolen,  the  thief  can  not  use  it  except  by  forgery, 
and  the  payment  of  the  bond  or  the  interest  checks  may  be  stopped. 
The  bond  itself  may  be  replaced  on  proof  of  loss  and  if  proper 
security  is  given. 

Registered  bonds  are  the  best  suited  for  the  great  majority  of 
railroad  men.  The  number  of  coupon  bonds  outstanding  in  the 
hands  of  railroad  men,  many  of  them  kept,  doubtless,  in  places 
affording  no  real  security,  is  such  a  vast  aggregate  amount  that  it 
causes  serious  concern. 

This  is  a  wholly  unnecessary  risk.  The  Director  General  of 
Railroads  therefore  strongly  advises  that  you 

REGISTER    YOUR    LIBERTY   BONDS. 

Officials  of  all  railroads  under  Federal  control  are  requested  to 
give  all  information  and  assistance  within  their  power  to  employees 
(lesiring  to  register  their  Liberty  bonds. 

Directions  appear  on  the  reverse  side  of  this  circular,  not  only  for 
registering  your  Liberty  bonds,  but  also  for  converting  the  3i  per 
cent  bonds  and  4  per  cent  bonds  into  bonds  paying  A\  per  cent 

interest. 

W.  G.  McAdoo, 

Director  General  of  Railroads. 


Directions  for  Registration  and  Conversion. 

registration. 

In  order  to  register  a  coupon  bond,  the  simplest  way  is  to  consult 
a  reputable,  local  banker;  otherwise,  a  letter  to  the  Secretary  of  the 
Treasury  (Division  of  Loans  and  Currency),  Washington,  will  get 
you  "Form  1031,"  Avhich  will  contain  blank  spaces  for  r.ll  the  infor- 


381 

mation  which  the  Ticasiiry  Department  needs  to  issue  the  registered 
))ond  in  your  name.  Tlie  coupon  bond  must  then  be  forwarded 
with  this  blank  to  the  Secretary  of  the  Treasury  (Division  of  Loans 
and  Currency),  Wasliington,  or  to  any  Federal  Reserve  Bank,  by 
express  at  its  declared  value,  or  in  any  other  way  protecting  the 
owner  against  possible  loss. 

The  Treasury  Department  makes  no  charge  whatsoever  for  regis- 
tering bonds.  The  registered  bond  Mill  be  delivered  to  the  owner 
b}-  registered  mail,  without  expense. 

CONVERSION. 

If  the  coupon  bond  to  be  exchanged  for  a  registered  bond  is  a  3^ 
or  4  per  cent  bond,  it  may  be  converted  (until  Nov.  9,  next)  into  a 
4^  per  cent  bond,  at  the  same  time  that  it  is  forwarded  for  registra- 
tion. This  may  be  done  through  the  banker  also.  The  Secretary  of 
the  Treasury  (Division  of  Loans  and  Currency)  will  send,  on  request, 
"Form  L.  &  C.  25."  This  form  contains  the  request  for  conversion 
on  the  face,  and,  on  the  back,  under  "No.  1,"  the  request  to  register 
the  bond;  so  that  the  whole  transaction  (both  conversion  and  regis- 
tration) may  be  handled  on  the  one  form.  Hence,  if  you  merely 
want  to  register,  ask  for  "Form  1031";  if  you  wish  both  to  register 
and  to  convert  into  bonds  bearing  the  higher  interest  rate,  ask  for 
"FormL.  &  C.  25." 

If  the  bonds  to  be  converted  are  the  First  Loan  3^  per  cent  bonds, 
the  dates  of  payment  of  interest  are  such  that  the  United  States 
must  be  paid  the  difference  between  3^  and  4 J  per  cent  from  June  15 
to  the  date  of  payment.  The  bondholder  gets  this  money  back  on 
December  15,  because  the  interest  payable  on  that  date  is  at  the 
rate  of  4^  per  cent  from  June  15.  The  amount  of  the  interest  ad- 
justment in  this  special  case  of  the  3J  per  cent  bonds  will  be  shown 
in  a  table  that  the  Treasury  Department  will  furnish  on  request. 
(Interest  Table  No.  4.)  For  example,  on  a  $100  bond  converted  on 
July  15  he  would  have  to  pay  six  cents.  The  money  may  be  paid  by 
post  office  or  express  money  order,  payable  to  the  order  of  "Treasurer 
of  the  L^nited  States,  Second  Conversion  Account." 

No  payment  is  necessary  if  3  J  per  cent  bonds  are  merely  to  be 
registered  without  converting  into  41  per  cent  bonds. 

The  Treasury  Department  issues  detailed  regulations  covering  reg- 
istration and  convei-sion  of  bonds,  known  as  Circulars  No.  100  and 
No.  114,  which  may  be  had,  on  request,  from  the  Treasury  Depart- 
ment or  Federal  Reserve  Banks. 

Registered  Liberty  bonds  which  have  been  issued  in  exchange  for 
coupon  bonds  may  be  reexchanged  for  coupon  bonds  at  any  time. 
Bonds  once  converted  into  bonds  of  a  higher  interest  rate  can  not  be 
reconverted. 


382 
Circular  No.  44. 

Washington,  July  29,  1918. 

First.  Wherever  street  or  road  construction  and  other  pubUc  im- 
provements are  contemplated  by  the  authorities  in  any  state,  county, 
district,  or  municipaUty,  for  which  a  portion  of  the  cost  in  an  amount 
exceeding  Five  Hundred  Dollai-s  ($500.00)  is  to  be  charged  against  any 
railroad  under  Federal  control,  the  authorities  are  requested  to  take 
the  matter  up  with  the  Federal  management  of  the  road  directly  in- 
terested and  secure  the  concurrence  of  the  Railroad  Administration  in 
advance. 

Second.  In  the  event  this  is  not  done,  the  Director  General  will 
reserve  the  right  to  decide  whether  or  not  he  will  participate  in  the 
payment. 

Third.  It  is  not  the  attitude  of  the  Director  General  to  oppose 
construction  of  tliis  character  which  is  meritorious  and  essential.  The 
Director  General  feels,  however,  that  in  the  present  stress  as  to  the 
essential  labor  and  material  supply  all  work  of  this  kind  which  can  be 
postponed  without  injury  should  not  be  undertaken,  and  the  railroad 
shoidd  not  be  expected  to  participate  in  the  payment  unless  the  ex- 
penditure is  indispensable. 

W.    G.   McAdoo, 
Director  General  of  Railroads. 


Circular  No.  44— A. 

Washington,  December  30,  1918. 
Circular  No.  44,  dated  July  29,  1918,  is  hereby  canceled. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  45. 

Washington,  D.  C,  July  26,  1918. 
Effective  this  date,  Mr.  L.  G.  Scott  is  appointed  Acting  Treasurer 
of  the  United  States  Railroad  Administration  vice  Mr.  A.  D.  Mc- 
Donald   (Vice-President    and    Controller    of    the    Southern    Pacific 

Company),  Acting  Treasurer,  resigned. 

W.    G.    McAdoo, 
Director  General  of  Railroads. 


Circular  No.  46. 

Washington,  August  7,  1918. 
Effective  July  29,  1918,  the  Short  Line  Section  of  the  Division  of 
Public  Service  and  Accounting  has  been  created,  and  Mr.  Edward  C. 
Niles  has  been  appointed  Manager,  with  office  at  Washington,  D.  C. 


383 

The  Short  Line  Section  will  Ix^  charged  with  the  duty  of  seeing 
that  Short  Line  roads  which  are  l)eing  operated  by  their  owners 
whether  under  Federal  control  based  upon  contract  or  whether 
definitely  rfllmquished  from  Federal  control  receive  a  fair  division  of 
rates,  fair  treatment  in  the  routing  of  traffic,  and  a  reasonable  share 
of  the  available  car  supply,  and  such  helpful  cooperation  from  the 
United  States  Railroad  Administration  as  is  consistent  with  present 
war  conditions,  and  that  in  general  m  their  relation  to  other  railroads 
they  are  fairly  dealt  with. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


ClKCULAR   No.  47. 

Washington,  D.  C,  August  17,  1918. 
The  Operating  Department  of  the  Pullman  Company,  now  under 
Fetleral  control,  will  hereafter  be  known  as  the  Pullman  Car  Lines. 
Mr.  L.  S.  Taylor  is  appointed  Federal  Manager  of  the  Pullman  Car 
Lines,  effective  this  date,  with  office  in  the  Pullman  Building,  Chi- 
cago, 111. 

The  Federal  Manager  of  the  Pullman  Car  Lmes  will  have  juris- 
diction over  all  departments,  reporting  to  the  Director,  Division  of 
Operation. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  48. 

Washington,  August  22,  1918. 
A  Freight  Claim  Section  of  the  Division  of  Law  is  hereby  estab- 
lished,  with  jurisdiction   over  all  matters   pertainmg   to   loss   and 
damage  freight  claims  and  their  prevention. 

Mr.  John  H.  Howard  is  appointed  manager,  with  office  in  Southern 
Railway  Building,  Washington,  D.  C. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  49. 

Washington,  August  22,  1918. 
Effective  August  1,  1918,  the  handling  of  loss  and  damage  freight 
claims  and  the  prevention  of  causes  of  such  claims  will  be  placed  in 
charge  of  freight  claim  agents,  reporting  to  the  head  of  the  legal 
department  of  each  railroad. 


384 

Claims  for  personal  injury  and  damage  to  property,  other  than 

freight,  will  be  handled  by  the  legal  department. 

Overcharge  and  relief  claims  will  be  handled  by  the  accounting 

department.  * 

W,  G.  McAdoo, 

Director  General  of  Railroads. 


Circular  No.  50. 

Washington,  August  22,  191 S. 

To  promote  efficiency  and  public  convenience  in  the  service  ren- 
dered by  the  raihoads  I  have  caused  to  be  organized  a  ''Bureau  for 
Suggestions  and  Complaints"  as  more  fully  shown  in  the  subjoined 
notice. 

This  Bureau  has  been  placed  in  charge  of  Theodore  H.  Price, 
Actuary  to  the  United  States  Railroad  Administration.  In  this 
work  he  will  have  the  assistance  of  Mr.  Ballard  Dunn,  who  is  hereby 
appointed  Assistant  Actuary  to  the  United  States  Railroad  Admin- 
istration. 

The  attached  notice  shall  be  permanently  displayed  m  all  stations 
and  passenger  coaches  imder  control  of  the  United  States  Railroad 
Administration  and  when  practicable  shall  also  be  displayed  on  aU 
time-tables,  dinmg  car  menus  and  other  printed  matter  prepared 

for  public  distribution. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


UNITED  STATES  RAILROAD  ADMIXISTRATIOX. 

W.  G.  McAdoo,  Director  General  ov  Railroads, 

Washington,  D.  C. 
To  the  Public: 

I  desire  your  assistance  and  cooperation  in  making  the  railroad  service  while  under 
Federal  control  in  the  highest  possible  degiee  satisfactory  and  efiicient. 

Of  course,  the  paramount  necessities  of  the  war  must  have  first  consideration. 

Our  gallant  sons  who  are  fighting  in  France  and  on  the  high  seas  can  not  be  ade- 
quately supported  unless  the  railroads  supply  sufficient  transportation  for  the  move- 
ment of  troops  and  war  materials  and  to  keep  the  war  industries  of  the  Nation  going 
without  interruption. 

The  next  purjiose  is  to  serve  the  public  convenience,  comfort,  and  necessity  lo  the 
fullest  extent  not  incompatible  with  the  paramount  demands  of  the  war. 

In  order  to  accomplish  this,  criticisms  and  suggestions  from  the  public  will  be  ex- 
tremely helpful,  whether  they  relate  to  the  service  rendered  by  employees  and  officiale 
or  impersonal  details  that  may  convenience  or  inconvenience  patrons  of  the  railroad. 
It  is  impossible  for  even  the  most  vigilant  management  to  keep  cousUntly  in  touch 
with  local  conditions  and  correct  them  when  they  are  not  as  they  should  be,  unless 
the  public  will  cooperate  in  jjointing  out  deficiencies  and  disservice  when  they  exist, 
eo  that  the  proper  remedies  may  be  applied. 


385 

BVREAl"    FOR    SUGGESTIONS    AND    COMPLAJNTS. 

I  have,  therefore,  established  a  Bureau  for  Suggestions  and  Complaints  in  the 
Director  General's  office  at  Washington,  to  which  the  public  is  invited  to  resort. 

Aside  from  letters  of  complaint  and  suggestion,  the  public  can  render  a  genuine 
Borvice  by  sending  letters  of  commendation  of  employees  who  are  conspicuously 
courteous  and  efficient  in  the  performance  of  their  duties.  Nothing  promotes  the 
esprit  of  a  great  organization  more  than  recognition  from  time  to  time  of  those  em- 
ployees who  perform  their  duties  faithfully  and  commendably. 

It  is  requested  that  all  commimi cations  be  brief  and  explicit  and  that  the  name  and 
address  of  the  writer  be  distinctly  written. 

Also  give  the  time  of  day  or  night,  the  number  of  the  train,  the  name  of  the  railroad, 
and,  if  possil^le,  the  name  of  the  employee  whose  conduct  is  complained  of  or  whosd 
services  are  commended,  together  with  such  other  information  as  will  enable  nie  to 
take  appropriate  action. 
Please  address 

W.  G.  McAdoo, 
Director  General  of  Railroads, 
Bureau  for  Suggestions  and  Complaints, 

Washington,  J).  C. 

CmciiLAR  No.  51. 

Washington,  August  27,  WIS. 

In  order  to  raise  sufficient  money  to  arm,  equip,  and  support  our 
gallant  soldiers  and  saUors,  to  finance  our  other  war  activities,  and 
to  extend  necessary  credits  to  our  allies,  to  enable  them  to  continue 
the  war  against  the  German  miUtary  despotism,  the  Fourth  Liberty 
Loan  campaign  will  begin  September  28,  1918.  Every  loyal  Ameri- 
can must  invest  in  the  securities  of  his  Government  to  the  limit  of 
his  ability  if  America  is  to  triumph  ui  this  war. 

Railroad  men  and  women  are  doing  a  vital  service  for  their 
country.  They  responded  patriotically  to  the  appeal  of  the  Govern- 
ment in  the  First,  Second,  and  Third  Liberty  Loan  campaigns,  and  I 
hope  that  they  have  bought  liberally  of  War  Savings  Stamps.  They 
are  also  operating  the  railroads,  which  is  war  service  of  primary  im- 
portance. I  am  sure  that  they  count  it  a  glorious  privilege  to  do 
this  vital  work  for  their  country.  I  deeply  appreciate  what  they 
have  already  done,  but  there  is  more  to  do,  and  I  am  sure  that  they 
wiU  do  more  if  the  way  is  pointed  out  to  them. 

The  enormous  sums  required  to  finance  democracy's  part  in  the 
war  impose  a  new  duty  upon  each  and  every  one  of  us.  Liberty 
Loans  must  be  offered  from  time  to  time  until  the  Kaiser  is  licked  to 
a  finish.  Each  of  these  loans  must  be  subscribed  in  full.  No  patri- 
otic American  will  have  performed  his  duty  by  subscribing  to  (me 
loan  only,  or  by  buying  a  few  War  Savings  Stamps.  Each  and  every 
one  should  practice  every  }x)ssible  economy,  save  every  possible  dollar, 
and  buy  as  many  Liberty  Bonds  as  he  can  afford  every  time  a  Liberty 
Loan  is  offered  to  the  country. 
10.5889°— li) 25 


386 

In  the  Fourth  Liberty  Loan  campaign  which  is  just  ahead  of  us  I 
wish  to  make  a  special  appeal  to  every  railroad  employee  to  go  the 
Hmit  in  lending  of  his  available  means  to  Uncle  Sam.  Now  is  the 
time  to  prepare  for  that  campaign  by  saving  every  possible  dollar,  so 
that  each  may  be  ready  to  do  his  part  before  the  subscription  closes; 
Hmidreds  of  thousands  of  employees  in  the  railroad  service  of  the 
United  States  have  received,  or  will  receive,  checks  for  back  pay,  in 
accordance  with  the  provisions  of  the  Wage  Order  I  approved  May 
25,  1918,  and  Supplement  No.  4  to  General  Order  27,  issued  on  July 
25,  1918.  No  employee  can  make  better  use  of  his  back  pay  than  to 
lend  it  to  the  Government  at  interest  thus  securing  an  investment  of 
absolute  safety  for  himself  and  Iniilding  up  a  reserve  for  a  rain}-- 
day. 

You  must  remember  that  you  are  not  asked  to  give  your  savings 
to  the  Government;  you  are  asked  merely  to  lend  your  money  to  your 
Government — and  for  what  purpose  ?  To  back  the  millions  of  the 
finest  American  boys  ever  collected  together  in  a  great  Army,  and 
to  help  them  fight  irresistibly  for  our  lives,  liberties,  and  vital  in- 
terests. One  and  a  half  million  of  these  splendid  boys  are  already 
in  France,  and  already  they  have  given  the  Kaiser  a  dose  from  which 
he  is  staggermg  and  from  which  he  wiU  not  recover.  But  the  pres- 
sure must  be  kept  up.  Arms,  ammimition,  and  food  supplies  of  all 
kinds  must  go  forward  in  a  continuous  stream  if  the  pressure  is  to 
be  maintained.  It  depends  upon  us  who  stay  at  home  to  keep  the 
pressure  applied.  We  must  lend  our  money  to  our  Government, 
lend  it  to  the  limit,  so  that  the  Government  may  in  turn  put  in  the 
hands  of  our  splendid  sons  the  things  without  which  they  can  not 
fight  and  without  which  the  defeat  of  the  Kaiser  and  his  hateful 
military  despotism  can  not  be  accomplished. 

I  want  the  railroad  men  and  women  of  the  United  States  to  do 
more,  if  possible,  than  anybody  else,  because  I  want  them  to  be  among 
the  first  always  in  patriotism,  in  service,  and  in  sacrifice  to  our  great 
and  glorious  country.  We  have  the  Kaiser  groggy — let  us  keep  hit- 
ting hard  now  imtil  he  is  counted  out. 

W.  G.  McAdoo, 

Director  General  of  Railroads. 


Circular  No.  52. 

Washington,  D.  C,  August  21,  1918. 
Effective   September    1,    1918,   Mr.   H.   B.   Walker  is  appouited 
Federal   Manager   of   the   Coastwise   Steamship   Lines,   with   office 
Southern  Pacific  Pier  49,  North  River,  New  York. 


387 

The  Coastwise  Steamship  Lines  will  inehide  the  properties  now 
tinder  Federal  control  of  the 

Old  Dominion  Steamship  Co., 
Ocean  Steamship  Co., 
Southern  Steamship  Co., 
Merchants  &  Muicrs  Transportation  Co., 
Mallory  Steamship  Co., 
Clyde  Steamship  Co., 

Southern  Pacific  Co. — Atlantic  Steamship  Lines. 
The  Federal  Manager  of  the  Coastwise  Steamship  Lines  will  have 
jurisdiction  over  all  departments,  reporting  to  the  Director,  Division 
of  Operation. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  53. 

Washington,  D.  C,  Septemher  5,  1918. 

The  Division  of  Liland  Waterways  is  hereby  created  and  Mr.  G.  A. 
Tomlinson  is  appointed  Director  thereof,  with  office  in  Washington, 
D.  C. 

Mr.  H.  S.  Noble  is  hereby  appointed  Federal  Manager  of  the  New 
York  and  New  Jersey  Canals  to  succeed  Mr.  Tomlinson. 

The  Federal  Manager  of  the  New  York  and  New  Jei-sey  Canals, 
the  Federal  Manager  of  the  Mississippi-Warrior  Waterways,  and 
the  Managers  of  any  other  Federal  systems  of  Inland  water  trans- 
portation hereafter  created  by  the  Director  General  will  report  to  the 
Director  of  the  Division  of  Iidand  Waterways. 

The  Director  of  the  Division  of  Inland  Waterways  wiU  take  over 
the  records  and  unfinished  work  of  the  Committee  on  Inland  Water- 
ways which  is  hereby  discontmued,  its  principal  functions  having 
been  discharge<l  by  the  investigations  and  reports  which  it  has 
already  made. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  54. 

[Circular  No.  54-A  changes  title  of  Insurance  and  Fire  Protection  Section.] 

Washington,  D.  C,  Septemher  3,  191S. 
The  Insurance  and  Fire  Protection  Section  has  been  established 
in  the  Division  of  Finance  and  Purchases  and  in  supervising  this 
Section  Mr.  John  Skelton  Williams,  the  Director  of  the  Division, 
will  be  assisted  by  Mr.  Theodore  H.  Price,  Actuary  to  the  Railroad 
Administration. 


388 

Mr.  Charles  N.  Rambo,  formerly  Superintendent  and  Secretary  of 
the  Mutual  Fire  Marine  and  Inland  Insurance  Company,  Philadelphia, 
has  been  appointed  Manager  of  the  Insurance  and  Fire  Protection 
Section  with  headquarters  in  the  Premier  Building,  No.  718— 18th 
Street  NW.,  Washington,  D.  C. 

In  the  work  devolving  upon  it  the  Insurance  and  Fire  Protection 
Section  will  have  the  cooperation  of  an  Advisory  Committee  of  which 
Mr.  Theodore  H.  Price  is  Chairman.  The  other  members  of  the 
Committee  are  Mr.  R.  M.  Bissell  (President  of  the  Hartford  Fire 
Insurance  Co.,  Hartford,  Connecticut,  and  also  Chairman  of  the 
National  Conservation  Committee  and  the  National  Board  of 
Fire  Underwriters) ;  Mr.  Charles  E.  Mather  of  Philadelphia;  Mr.  D.  R. 
McLennan,  of  Chicago,  and  Mr.  A.  M.  Schoen,  a  civil  and  electrical 
fu-e  protection  engineer  and  expert,  at  present  Chief  Engineer  of 
the  Southeastern  Underwriters  Association  of  Atlanta,  Georgia,  and 
also  a  member  of  various  National  and  other  consulting  boards 
throughout  the  United  States. 

The  Insurance  and  Fire  Protection  Section  will  have  its  own  force 
of  general  inspectors  and  loss  investigators,  reporting  directly  to  it 
at  Washington,  and  through  the  Division  of  Operation  will  com- 
municate to  the  Regional  Directors  and  the  officers  and  employees 
of  the  operating  force  under  them  with  regard  to  the  work  of  fire 
prevention  and  inspection  on  all  railw  ays  under  control  of  the  United 
States  Railroad  Administration,  with  the  object  of  utilizing  existing 
organizations  as  they  may  be  available,  reorganizing  them  when 
it  may  be  necessary,  and  establishing  adequate  fu^e  protection  and 
inspection  organizations  for  those  properties  upon  which  no  such 
organization  is  now  maintained. 

Prompt  compliance  with  the  recommendations  of  the  Insurance 
and  Fire  Protection  Section  received  through  the  channels  designated, 
will  be  required  from  all  officials  of  the  railroads. 

The  heavy  fire  losses  throughout  the  country  and  the  recent 
destruction  by  fire  in  and  on  the  railroad  properties  emphasize  the 
need  of  increased  vigilance  in  applying  the  latest  and  most  efi'ective 
methods  of  fire  prevention,  and  it  is  especially  essential  that  the 
officials  and  employees  shall  with  renewed  energy  cooperate  in  the 
reduction  of  the  hazard  and  the  unnecessary  fire  waste. 

It  is  believed  that  if  every  employee  can  be  made  to  feel  an  alert 
consciousness  of  responsibility  for  this  loss,  that  it  can  be  substan- 
tially reduced,  thus  effecting  an  important  saving  in  the  cost  of 
operation  and  avoiding  the  interference  with  and  delay  of  traffic 
that  fires  cause.  To  this  end  the  earnest  cooperation  of  every  em- 
ployee of  the  United  States  Railroad  Administration  is  desired  and 
requeste  .  ^^    ^    McAdoo, 

Director  General  of  Railroads. 


389 

Circular  No.  ,5-1— A. 

Washington,  October  22,  1918. 
The  name  of  the  Insurance  and  Fire  Protection  Section,  estab- 
lished by  Circular  No.  54,  dated  September  3,  1918,  is  hereby  changed 
<o  The  Fire  Loss  and  Protection  Section. 

W.  G.  McAdoo. 
Director  General  of  Railroads. 


Circular  No.  55. 

Washington,  Septemher  13,  WIS. 
Effective  September  1,  1918,  the  Marine  Section  of  the  Division  of 
Transportation,  the  creation  of  which  was  announced  in  Circular  No.  5, 
has  been  discontinued. 

Coastwise  steamship  lines  under  Federal  control  will  be  under  the 
jurisdiction  of  the  Federal  Manager  as  announced  in  Circular  No.  52. 
Shipping  on  the  Great  Lakes  under  Federal  control  will  be  under 
the  jurisdiction  of  the  Regional  Director,  Eastern  Region, 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  56. 

Washington,  September  18,  1918. 

The  patriotic  support  of  railway  employees  to  the  Third  Liberty 
Loan  was  more  than  gratifying.  On  some  railroads  practically  every 
employee  became  a  subscriber  for  one  or  more  of  these  bonds. 

Now  that  the  Fourth  Liberty  Loan  is  about  to  begin,  I  earnestly 
urge  all  railroad  officials  and  employees  to  cooperate  in  securing  a 
'100  per  cent"  result  on  every  railroad.  I  believe  that  where  the 
officials  and  employees  unite  in  a  patriotic  support  the  response  wiU 
be  even  more  gratifying  than  that  to  the  Third  Liberty  Loan. 

I  realize  that  there  are  many  instances  where  railroad  employees 
are  not  financially  able  to  assume  additional  obhgations.  Li  such 
instances  there  should  be  no  criticism  of  the  failure  of  an  employee 
to  subscribe  to  the  Fourth  Liberty  Loan.  I  beheve,  however,  that 
when  the  urgency  of  the  need  is  presented  to  employees  that  few  will 
fail  in  their  financial  support  of  the  Government. 

My  attention  has  been  called  to  the  fact  that  in  the  past  loans 
many  employees  have  subscribed  tluough  their  banks  and  tlirough 
other  agencies  than  the  raiboads.  No  criticism  should  be  made 
against  employees  for  subscribing  to  bonds  in  this  way,  but  it  is  a 
matter  of  pride  to  the  Railroad  Administration  that  the  emploj^ees 
on  each  railroad  shall  receive  the  credit  for  all  subscriptions  they 
make. 


390 

Government  bonds  are  the  safest  investment  in  the  world,  and  in 
making  such  an  investment  railroad  employees  at  the  same  time  have 
an  opportunity  to  help  win  the  war  and  give  needed  support  to  our 
noble  sons  and  brothers  who  are  risking  and  giving  their  hves  upon 
tlie  battle  fields  and  upon  the  seas. 

I  hope  that  100  per  cent  of  the  railroad  employees  wiU  subscribe 
to  the  bonds  of  the  Fourth  Liberty  Loan.  I  can  think  of  nothing 
more  inspiring  than  the  great  body  of  railroad  employees  effectively 
banded  together  to  work  for  the  success  of  the  Fourth  Liberty  Loan, 
and  I  urge  upon  each  railroad  employee  patriotically  to  do  his  share. 
In  this  way  we  can  shorten  the  war,  save  many  lives,  and  bring  a 
glorious  victory  to  America  and  to  democratic  principle  everywhere. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


FOURTH    LIBERTY    LOAN    DETAILS. 

The  Fourth  Liberty  Loan  campaign  will  begin  on  September  28  and  close  October 
19,  and  in  order  to  encourage  employees  to  subscribe  thereto  Federal  managers  are 
authorized  to  take  such  amount  of  the  bonds  as  may  be  necessary  to  care  for  such 
subscriptions,  and  current  Federal  funds  may  be  used  as  far  as  necessary  in  paying  for 
such  bonds. 

Final  details  of  the  bonds  have  not  yet  been  determined,  but  the  law  which  author- 
izes an  additional  issue  of  bonds  provides  that  they  shall  be  of  the  same  general  character 
as  the  bonds  of  the  Thii-d  Liberty  Loan.  The  rate  of  interest  will  be  4^  per  cent,  but 
the  maturity  of  the  bonds  will  be  later  determined  by  the  Secretary  of  the  Treasury, 
as  ^\dll  also  the  dates  on  which  interest  payments  will  be  made.  The  bonds  will  be 
issued  in  denominations  of  |50,  $100,  $500,  $1,000,  and  upward,  and  may  be  obtained 
in  either  registered  or  coupon  form.  Interest  on  registered  bonds  is  paid  by  check 
from  the  United  States  Treasury  Department,  and  interest  on  coupon  bonds  is  repre- 
sented by  detachable  coupons,  collectible  through  any  post  office  or  bank. 

Officers  and  employees  will  be  permitted  to  pay  in  installments  covering  a  period 
of  not  exceeding  eight  months,  provision  being  made  so  that  such  installments  may 
be  paid  by  deduction  on  the  pay  roll. 

In  connection  with  the  Third  Liberty  Loan  it  was  permitted  that  payments  on  new 
subscriptions  might  begin  at  the  expiration  of  the  period  covering  installment  pay- 
ments on  subscriptions  to  the  Second  Liberty  Loan,  in  order  to  avoid  making  payment 
on  both  subscriptions  at  the  same  time. 

For  that  reason  payment  to  the  Third  Liberty  Loan  in  many  cases  mil  not  be  com- 
pleted until  June,  1919.  Since  the  last  loan,  however,  employees  generally  have 
received  substantial  increases  in  wages,  and  therefore  it  is  unnecessary  to  avoid  the 
making  of  payments  on  two  subscriptions  at  the  same  time. 

Payments  on  subscriptions  to  the  Fourth  Liberty  Loan  may,  however,  when  the 
subscriber  is  also  making  payments  on  subscriptions  to  the  Third  Liberty  Loan, 
commence  -vvith  the  month  of  January,  1919,  the  period  of  eight  months  running 
therefrom.  In  cases  where  employees  are  not  making  payments  on  8ubscri{)tions  to 
Third  Liberty  Loan  bonds,  payments  shall  begin  with  the  pay  roll  for  the  last  half 
of  October,  1918. 

Employees  will  be  credited  with  interest  on  bonds  during  the  period  of  installment 
payments,  and  will  be  charged  interest  on  deferred  payment  both  at  4\  per  cent. 
When  the  last  installment  payment  is  made  the  bond  will  be  delivered  to  the  sub- 


391 

scriber.  Adjustment  of  interest  will  be  made  in  the  last  month's  installment  payment. 
Coupon  (covering  interest  which  matures  during  the  period  of  installment  payments) 
will  be  detached  by  the  Federal  Treasurer  and  the  interest  collected.  Subscribers 
will,  however,  receive  proper  proportionate  credit  on  account  of  such  coupons  in  the 
adjustment  of  interest  to  be  made  in  the  last  installment  payment,  as  described  above. 

Should  employees  leave  the  ser^'ice  before  completion  of  the  payments,  the  amount 
paid  will  be  refunded  without  interest. 

Employees  may  pay  for  bonds  in  full  at  the  time  of  subscription;  or.  if  they  sub- 
scribe on  the  installment  plan,  they  may  at  any  time  pay  up  the  unpaid  installments 
in  full  and  receive  the  bonds. 

Employees  should  not  hesitate  to  place  their  subscription  with  the  Federal  treasurer 
of  the  road  on  which  they  are  employed  for  fear  that  their  local  district  may  not  receive 
credit  for  subscriptions,  for  arrangements  are  being  made  so  that  the  subscriptions  of 
railroad  employees  will  be  reported  according  to  their  homes,  and  the  local  district  will 
in  each  case  receive  corresponding  credit  to  apply  toward  its  quota. 

Instructions  are  being  issued  to  regional  directors  relative  to  the  formation  of  com- 
mittees, etc..  to  organize  and  promote  this  work,  with  which  committee  when  ap- 
pointed all  railroad  employees  are  urged  to  cooperate. 

^Tiile  bonds  are  being  issued  in  both  coupon  and  registered  form,  I  advise  and 
mge  that  employees  subscribe  for  registered  bonds,  which  in  case  of  loss  or  destruction 
by  fire  will  be  replaced  by  the  United  States  Treasury 


Circular  No.  o6-A. 

Washington,  Septemher  18,  1918. 

The  patriotic  support  of  railway  employees  and  of  employees  of 
steamships  under  control  of  the  Director  General  to  the  Third 
Liberty  Loan  was  more  than  gratifying.  On  some  lines  practically 
every  employee  became  a  subscriber  for  one  or  more  of  these  bonds. 

Now  that  the  Fourth  Liberty  Loan  is  about  to  begin,  I  earnestly 
urge  all  officials  and  employees  to  cooperate  in  securing  a  "100  per 
cent"  result  on  every  line.  I  beheve  that  where  the  officials  and 
employees  unite  in  a  patriotic  support  the  response  will  be  even 
more  gratifying  than  that  to  the  Third  Liberty  Loan. 

I  reahze  that  there  are  many  instances  where  employees  are  not 
financially  able  to  assume  additional  obhgations.  In  such  instances 
there  should  be  no  criticism  of  the  failure  of  an  employee  to  subscribe 
to  the  Fourth  Liberty  Loan.  I  beheve,  however,  that  when  the 
m-gency  of  the  need  is  presented  to  employees  that  few  will  fail  in 
their  financial  support  of  the  Government. 

My  attention  has  been  called  to  the  fact  that  in  the  past  loans 
many  employees  have  subscribed  through  their  banks  and  through 
other  agencies  than  the  railroads  and  steamship  lines.  No  criticism 
should  be  made  against  employees  for  subscribing  to  bonds  in  this 
way,  but  it  is  a  matter  of  pride  to  the  Railroad  Administration  that 
the  employees  on  each  line  shall  receive  the  credit  for  all  subscriptions 
they  make. 

Government  bonds  are  the  safest  investment  in  the  world,  and  in 
making  such  an  investment  employees  at  the  same  time  have  an 


392 

opportunity  to  help  win  the  war  and  give  needed  support  to  our 

noble  sons  and  brothers  who  are  risking  and  giving  their  lives  upon 

the  battle  fields  and  upon  the  seas. 

I  hope  that  100  per  cent  of  the  employees  of  the  Director  General 

of  Raih'oads  will  subscribe  to  the  bonds  of  the  Fourth  Liberty  Loan. 

I  can  think  of  notliing  more  inspii'ing  than  the  great  body  of  raih-oad 

and  steamship  employees  effectively  banded  together  to  work  for 

the  success  of  the  Fourth  Liberty  Loan,   and  I  urge  upon  each 

employee  patriotically  to  do  his  share.     In  this  way  we  can  shorten 

the  war,  save  many  lives,  and  bring  a  glorious  victory  to  America 

and  to  democratic  principle  evervwhere. 

W.  G.  McAdoo, 

Director  General  of  RaUroerJ^. 


Fourth  Liberty  Loan  Details. 

The  Fom-th  Liberty  Loan  campaign  will  begin  on  September  28  and  close  October 
19,  and  in  order  to  encourage  employees  to  subscribe  thereto  Federal  managers  are 
authorized  to  take  such  amount  of  the  bonds  as  may  be  necessary  to  care  for  such 
subscriptions,  and  cuiTent  Federal  funds  may  be  used  as  far  as  necessary  in  paying 
for  such  bonds. 

Final  details  of  the  bonds  have  not  yet  been  determined,  but  the  law  which  author- 
izes an  additional  issue  of  bonds  provides  that  they  shall  be  of  the  same  general 
character  as  the  bonds  of  the  Third  Liberty  Loan.  The  rate  of  interest  will  be  A\ 
per  cent,  but  the  maturity  of  the  bonds  will  be  later  determined  by  the  Secretai-y 
of  the  Treasui-y,  as  will  also  the  dates  on  which  interest  payments  will  be  made.  The 
bonds  will  be  issued  in  denominations  of  $50,  $100,  $500,  $1,000,  and  upwards,  and 
may  be  obtained  in  either  registered  or  coupon  form.  Interest  on  registered  bonds 
is  paid  by  check  from  the  United  States  Treasury  Department,  and  interest  on  coupon 
bonds  is  represented  by  detachable  coupons,  collectible  through  any  post  office  or 
bank. 

Officers  and  employees  will  be  permitted  to  pay  in  installments  coveiing  a  period 
of  not  exceeding  eight  months,  provision  being  made  so  that  such  installments  may 
be  paid  by  deduction  on  the  pay  roll. 

In  connection  with  the  Third  Liberty  Loan  it  was  permitted  that  payments  on 
new  subscriptions  might  begin  at  the  expiration  of  the  period  covering  installment 
payments  on  subscriptions  to  the  Second  Liberty  Loan  in  order  to  avoid  making 
payment  on  l)0th  subscriptions  at  the  same  time. 

For  that  reason  payment  to  the  Third  Liberty  Loan  in  many  cases  will  not  be 
completed  until  June,  1919.  Since  the  last  loan,  however,  employees  generally 
have  received  sul>stantial  increases  in  wages,  and  therefore  it  is  unnecessary  to  avoid 
the  making  of  payments  on  two  subscriptions  at  the  same  time. 

Payments  on  subscriptions  to  the  Fourth  Liberty  Loan  may,  however,  wlion  the 
subscriber  is  also  making  payments  on  subscriptions  to  the  Thii'd  Liberty  Loan, 
commence  mth  the  month  of  January,  1919,  the  period  of  eight  months  running 
therefrom.  In  cases  where  employees  are  not  making  payments  on  subscriptions 
to  Third  Liberty  Loan  bonds,  payments  shall  begin  \\\\h.  the  pay  roll  for  the  last 
half  of  October,  1918. 

Employees  ^vill  be  credited  with  interest  on  bonds  during  the  period  of  installment 
payments  and  will  be  charged  interest  on  deferred  payment  both  at  4^  per  cent. 
When  the  laj^t  installment  payment  is  made,  the  bond  will  be  delivered  to  the  sub- 
scriber.    Adjustment  of  interest  will  be  made  in  the  last  month's  installment  pay- 


398 

ment.  Coupon  (covering  intere^'t  which  matures  during  the  period  of  installment 
pajments)  will  be  detached  by  the  Federal  Treasurer  and  the  interest  collected. 
Subscribers  wUl,  however,  receive  proper  proportionate  credit  on  account  of  such 
coupons  in  the  adjustment  of  interest  to  be  made  in  the  last  installment  payment, 
as  described  above. 

Should  employees  leave  the  ser\ice  before  completion  of  the  payments,  the  amount 
paid  \vill  be  refunded  ^vithout  interest. 

Employees  may  pay  for  bonds  in  full  at  the  time  of  subscription;  or,  if  they  subscribe 
on  the  installment  plan,  they  may  at  any  time  pay  up  the  unpaid  installments  in 
full  and  receive  the  bonds. 

Employees  should  not  hesitate  to  place  their  subscription  with  the  F'ederal  treas- 
urer of  the  road  on  which  they  are  employed  for  fear  that  their  local  district  may  not 
receive  credit  for  subscriptions,  for  aiTangements  are  being  made  so  that  the  sub- 
scriptions of  railroad  employees  will  be  reported  according  to  tlieii"  homes,  and  the 
local  district  mtII  in  each  case  receive  corresponding  credit  to  apply  toward  its  quota. 

Instructions  are  being  issued  to  regional  directors  relative  to  the  formation  of  com- 
mittees, etc.,  to  organize  and  promote  this  work,  with  which  committee  when  ap- 
pointed all  railroad  employees  are  mged  to  cooperate. 

While  bonds  are  being  issued  in  both  coupon  and  registered  form,  I  ad\dse  and  m-ge 
that  employees  subscribe  for  registered  bonds,  which  in  case  of  loss  or  destruction  by 
fire  will  be  replaced  by  the  United  States  Treasury. 


Circular  No.  57. 

Washington,  D.  C,  September  18,  1918. 
To  the  Regional  Directors: 

I  attach  statement  issued  by  the  Provost  Marshal  General  on 
September  9  to  employers  and  other  representatives  of  industry  urg- 
ing then-  cooperation  in  the  classification  of  the  new  registrants 
under  the  selective-service  act.  In  addition  to  the  instructions 
already  issued,  on  and  after  September  9,  with  a  view  to  such  coop- 
eration, you  are  hereb}-  mstructed  to  see  that  the  railroad  officers  shall, 
in  presentmg  or  supporting  claims  for  deferred  classification  before 
district  boards,  present  the  following  to  such  boards  as  a  statement  of 
the  policy  of  the  United  States  Radroad  Administration  and  of  the 
general  reasons  in  support  of  the  claims  made  for  deferred  classifica- 
tion : 

..;U1  apphcations  made  by  ofiicei-s  of  railroads  under  Federal  control 
for  deferred  classification  for  railroad  officers  and  employees  and  aU 
affidavits  made  by  railroad  officers  in  support  of  claims  for  such  de- 
ferred classification  are  made  by  them  as  officers  of  the  United  States 
Railroad  Administration  and  by  my  authority  and  in  pursuance  of  a 
general  poHcy  which  m  my  judgment  must  be  adopted  in  order  to 
meet  the  war  responsibilities  wliich  rest  upon  the  railroads  mider 
Federal  control. 

The  Government  of  the  United  States  has  taken  possession  and  con- 
trol of  the  railroads  as  a  war  measure,  and  their  efficient  and  unham- 
pered operation  is  indispensable  to  the  successful  conduct  of  the  war. 


394 

The  essential  character  of  the  raihoad  industry  as  a  war  enterprise 
is  not  open  to  dispute.  Indeed,  in  contrast  with  nearly  all  war  indus- 
tries, the  railroad  industry  is  one  of  the  very  few  which  has  actually 
become  a  Government  enterprise  because  of  its  essential  character  for 
war  purposes. 

In  such  circumstances  the  men  who  are  necessarily  employed  in 
raU  transportation  in  this  coimtry  are  as  truly  employed  in  an  indis- 
pensable war  service  as  are  our  soldiers  and  sailors. 

Since  the  raih'oads  are  indispensable  and  the  branches  of  the  service 
to  which  the  employees  belong  are  indispensable,  I  understand  the 
remaining  questions  for  consideration  by  the  district  board  are 
whether  a  particular  employee  can  be  dispensed  with  (1)  on  the 
ground  that  the  raUroad  has  more  of  such  employees  than  it  needs,  or 
(2)  upon  the  ground  that  it  can  readily  replace  such  employees  with 
others. 

Please  state  to  the  district  board,  with  my  fuH  authority,  that  after 
eight  and  a  half  months  of  a  thorough  and  continuing  study  of  this 
subject,  being  constantly  in  touch  with  employers  of  raihoad  labor, 
the  representatives  of  the  railroad  employees,  and  the  representatives 
of  the  labor  situation  generally  for  the  whole  country,  there  is  no  sur- 
plus whatever  of  employees  for  running  the  railroads,  and  there  is  no 
surplus  supply  of  labor  from  which  new  employees  can  be  drawn  to 
replace  those  who  may  be  taken  for  military  service.  Any  competent 
railroad  employee  taken  from  an  indispensable  branch  of  the  raih^oad 
service  wiU  be  subtracted  from  a  force  which  is  already  too  small  and 
which  can  not  be  adequately  replenished.  The  takmg  of  any  such 
employee  by  any  district  board  would  be  a  step  tendmg  to  injure  the 
war  operations  of  some  railroads.  The  taking  of  such  steps  by  nu- 
merous district  boards  would  in  the  aggregate  constitute  a  cimiulative 
and  far-reaching  injury  to  the  United  States  Kailroad  Administration 
and  would  destroy  the  purpose  for  which  the  Government  took  pos- 
session of  such  control  of  the  railroads. 

The  scarcity  of  skilled  railroad  employees  is  in  part  due  to  the  fact 
that  up  to  the  present  time  the  railroads  of  the  country,  in  addition 
to  meetmg  their  full  share  of  the  demands  of  men  for  general  military 
service,  have  been  subjected  to  the  peculiar  disability  that  they  alone, 
out  of  all  the  industries  of  the  country,  have  had  to  furnish  large  num- 
bei-s  of  men  for  special  military  service.  Hundreds  of  miles  of  mili- 
tary railroads  in  France  are  being  operated  for  the  military  forces  of 
the  United  States  who  have  been  drawn  from  the  ranks  of  the  skilled 
officers  and  employees  of  railroads  in  this  country.  In  this  way  the 
drain  upon  skilled  railroad  labor  has  already  been  proportionately 
greater  than  the  drain  upon  skilled  labor  of  other  industries,  and  this 
in  part  accounts  for  the  exceptional  shortage  of  skilled  raOroad  labor 
which  confronts  the  United  States  Railroad  Administration. 


395 

It  must  also  be  clear  that  employees  in  these  classes  can  not  be  sup- 
phed  by  the  emplo}Tnent  and  training  of  new  employees.  Practically 
without  exception  these  employments  are  not  suited  to  women,  but 
able-bodied  and  vigorous  men  are  needed  for  the  discharge  of  the 
duties.  These  men  are  not  available  in  adequate  numbers  and  will 
become  less  and  less  available  as  the  war  progresses.  Besides,  un- 
trained men  can  not  perform  the  functions,  and  if  skilled  railroad 
employees  are  taken  for  mihtary  service  the  substitution  of  untrained 
employees,  even  if  available,  would  prove  destructive  to  efficient 
railroad  operation. 

It  is  desired  that  the  understandmg  and  sympathetic  cooperation 
of  the  district  boards  shall  be  sought  m  all  instances.  We  are  all 
striving  for  the  same  end,  and  that  is  to  win  the  war.  To  the  extent 
that  railroad  men  can  be  spared  from  railroad  service  for  mihtary 
service  we  ought  to  spare  them.  But  to  the  extent  that  they  are 
needed  for  railroad  service  the  district  boards  should  not  attempt  to 
take  them  for  mihtary  service. 

The  United  States  Railroad  Administration  intends  to  ask  for  de- 
ferred classification  only  when  the  men  on  whose  behalf  the  request 
is  made  are  needed  in  the  pubHc  interest  for  the  contmued  perform- 
ance of  theu'  duties  and  when  experience^  substitutes  can  not  be 
found.  And  the  district  boards,  upon  whom  rests  the  responsibdity 
for  preservuig  the  necessary  labor  supply  for  essential  occupations, 
should  be  urged  to  grant,  in  the  interest  of  the  national  needs  ami 
with  a  nation-wide  view  of  the  controlling  factors,  the  apphcations 
for  deferred  classification  which  are  supported  by  the  United  States 
Railroad  Admmistration. 

Instructions  have  been  issued  through  the  regional  directors  to  aU 
officials  of  raihoads  under  Federal  control  to  see  that  proper  apphca- 
tions are  made  for  deferred  classification  for  all  necessary  radroad  em- 
ployees and  to  support  such  apphcations  vigorously,  and  at  the  same 
time  to  avoid  making  apphcations  wherever  reasonably  practicable. 

It  is  the  patriotic  duty  of  the  men  who  are  considered  necessary 
for  the  operation  of  the  radroads  to  claim  deferred  classification  and 
to  furnish  the  district  boards  with  the  necessary  information  in  their 
answei-s  to  questionnaires  to  show  the  basis  for  such  classification. 
Every  man  who  is  helping  in  these  necessary  occupations  to  operate 
the  radroads  in  this  comitry  is  rendering  not  only  a  service  indispen- 
sable to  the  war  but  a  service  that  is  as  praiseworthy  and  creditable 
as  any  war  service  could  be. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


396 

War  Department, 
Office  of  the  Provost  ^[arshal  General, 

Wa^hiiKiton.  Scptcmhrr  9,  1918. 
To  Employers  aiul  Other  Representatives  of  Inilustrij: 

The  time  has  come  when  I  must  address  to  you  some  recommendations  as  to  your 
ehai'e  of  responsibility  in  the  classification  of  the  new  registrants  under  the  selective- 
service  act.  I  have  noticed  in  the  general  expressions  of  the  public  attitude  which 
reach  this  office  two  frequent  featm'es  which  lead  me  to  the  present  comments.  One 
of  these  featm'es  is  the  belief  that  the  process  of  awarding  deferred  classification  to  a 
registrant  requires  merely  the  filling  out  of  the  Questionnaire  and  that  the  selective- 
service  boards  \n\\  perceive  the  propriety  of  making  the  deferment  vathout  the 
assistance  furnished  by  the  registrant's  formal  claim  indicating  the  deferment  desired. 
The  other  feature  is  the  employer's  failure  to  realize  his  responsibility  to  intervene 
in  aiding  the  boai'd's  determination  and  therefore  to  inform  himself  fully  on  all  the 
considerations  which  should  affect  the  decision  as  to  deferment.  Both  of  these 
features  are  due  to  a  single  larger  fact,  viz,  a  failm'e  on  the  part  of  many  to  reflect 
on  the  industrial  considerations  governing  deferred  classification. 

1.  As  to  the  first-mentioned  belief,  it  must  be  pointed  out  that  if  it  were  universally 
acted  upon,  the  process  of  classification  would  be  seriously  hampered  and  delayed. 
Some  one  raust  indicate  that  the  individual  case  is  one  which  should  arrest  the  special 
attention  of  the  boards  in  respect  to  the  registrant's  occupational  status.  The  boards 
do  not  possess  a  superhuman  omniscience.  Nor  are  they  permitted  by  circumstances 
to  devote  unlimited  time  to  the  search  of  Questionnaii'es  for  possible  grounds  of  claim. 
In  1917,  out  of  more  than  3,000,000  registrants  called,  only  140,000  filed  occupational 
claims,  or  4.7  per  cent;  thus  95  per  cent  of  all  registrants  raised  no  question  of  such 
deferment.  Under  the  Questioiinaii-e  system  the  exact  scrutiny  of  every  page  of 
this  95  per  cent  of  Questionnaires  presenting  no  occupational  claims  would  have 
been  an  intolerable  expenditure  of  time,  involving  a  delay  fatal  to  the  speed  and 
decisive  action  necessaiy  for  filling  the  jVi'niy. 

The  boards  will  do  all  that  they  possiblj^  can  on  then-  own  initiative  to  reach  a  just 
decision  by  a  complete  examination  of  the  Questionnaii-e,  even  where  no  claim  is 
expressly  made,  following  in  this  respect  the  spirit  of  the  Secretary  of  War's  statement 
made  before  the  House  Committee  on  Militaiy  Affairs  on  August  19  last:  "It  is  not 
easily  possible — it  is,  perhaps,  not  possible  at  all — to  do  that  without  some  aids  fi'om 
the  men  affected;  but  aa  far  as  it  is  possible,  we  ought  to  have  the  facts  developed  by 
the  answers  to  the  questions  which  the  man  makes  and  call  on  him  for  as  little  aid 
as  we  can  in  determining  whether  or  not  he  is  to  be  exempted."  A  registrant  is 
therefore  at  liberty,  if  he  sees  fit,  to  trust  to  the  scrutiny  of  the  boards  to  discover  the 
necessity  for  his  deferment. 

Nevertheless  the  boards  will  welcome  and  will  need  all  the  aid  that  can  be  furnished 
by  the  indication  of  a  claim  made  for  deferment.  With  this  aid  the  process  A^-ill 
become  a  simple  and  speedy  one.  Time  and  labor  will  not  be  wasted  on  needless 
search,  and  ample  time  will  be  gained  for  thorough  attention  to  those  cases  explicitly 
raising  a  question  of  occupational  deferment. 

But  who  is  to  make  that  claim?  Ordinarily,  the  regif^trant  himself  will  indicate 
the  claim  on  his  Questionnaire.  But  if,  through  mistaken  chivahy,  he  should  fail 
to  do  so,  another  may  make  it  for  him.  In  industry,  agriculture,  or  other  occupations, 
this  other  person  will  naturally  be  his  employer  or  some  other  representative  of  his 
associated  group.     And  this  brings  me  to  the  second  feature  above  mentioned. 

2.  "WTiy  should  the  employer,  or  other  third  person  in  such  cases,  make  the  claim? 
Because  the  employer  in  this  situation  represents  the  Nation — becau.se,  in  the  statu- 
tory phrase,  "the  maintenance  of  the  ^tilitary  Establishment  or  of  national  interest 
dining  the  emergency"  requires  that  some  well-advised  third  person  should  look 
after  that  national  interest,  which  the  registrant  him,>*elf  may  not  ha\e  sufficiently 
considered. 


397 

It  is  at  this  point  that  I  wish  to  address  to  employers,  and  other  representatives, 
the  suggestion  that  they  charge  themselves,  more  systematically  than  hitherto,  with 
this  responsibility.  I  have  above  referred  to  such  third  persons  as  '"well  advised," 
and  this  is  the  place  to  emphasize  to  employers  the  importance  of  making  themselves 
well  advised  for  the  execution  of  this  duty. 

How  many  employers,  having  charge  of  some  industrial  or  other  occupational 
gioup,  have  hitherto  taken  pains  to  inform  themselves  systematically  which  of  their 
employees  are  registrants  and  which  are  not?  How  many  have  studied  carefully  the 
required  conditions  for  occupational  deferment  as  laid  down  in  the  President's  regu- 
lations piu*suant  to  the  statute?  How  many  have  made  it  a  point  to  sinvey  theii- 
entire  plant  so  as  to  single  out  the  really  indispensable  individuals?  With  the  oncom- 
ing of  a  more  extensive  registration  an  even  larger  outlook  is  necessary.  The  general 
industrial  conditions,  the  supply  of  skilled  men  in  the  industry  at  large,  the  possi- 
bilities of  training  substitutes,  the  availability  of  women  workers — these  are  some  of 
the  considerations  which  bear  directly  on  the  need  of  occupational  deferment  as  related 
to  the  need  of  the  Army. 

Moreover,  it  is  often  forgotten  that  the  selective  draft  is  only  one  element  in  the 
depletion  of  a  particular  industry's  man  power.  A  second  and  large  element  is  found 
in  the  voluntaiy  withdrawals  for  enlistment;  how  large  this  is  may  be  seen  from  the 
circumstance  that  the  total  inductions  by  draft  have  reached  some  2,000,000,  while 
the  total  enlistments  in  Army  and  Navy  amount  to  some  1,400,000 — nearly  three- 
quarters  as  many.  A  third  element,  very  large,  but  unknown  as  to  its  precise  extent, 
has  been  the  transfer  of  labor  power  from  one  industry  to  another,  i.  e.,  into  the  dis- 
tinctly war  industries  offering  the  inducement  of  higher  wages.  How  relatively 
small,  in  actual  effect,  has  been  the  effect  of  the  selective  draft  is  seen  in  the  fact  that, 
for  all  the  occupations  represented  in  the  8,700,000  classified  registrants  of  January, 
1918,  the  percentage  of  the  entire  industrial  population  represented  by  the  Class  I 
registrants  amounted  to  only  6  per  cent.  It  ran  as  low  as  3  per  cent  for  some  occu- 
pations, and  correspondingly  higher  for  some  other  occupations;  but  the  national 
average  was  only  6  per  cent.  Any  notably  larger  depletions  in  particular  industries 
must  therefore  have  been  due,  partly  to  enlistments,  and  in  probably  greater  degi-ee, 
to  voluntary  transfers  into  other  industries. 

These  other  influences  are  therefore  to  be  kept  in  mind  by  employers  and  others 
in  weighing  the  question  whether  the  best  solution,  in  the  national  interest,  is  to 
ask  for  the  deferment  of  individuals  or  groups  of  men.  Such  deferments  may  assist 
the  immediate  situation  in  the  pai'ticular  establishment,  but  they  merely  force  the 
.\rmy  and  the  Navy  to  seek  elsewhere  for  the  same  number  of  men  thus  deferred. 
The  quantitative  needs  of  the  military  forces  are  known  and  imperative,  and  any 
given  quantity  of  deferments  will  ultimately  have  to  be  made  up  by  the  depletion 
of  some  other  occupation.  Thus,  it  becomes  the  employer's  duty  to  consider  these 
largest  aspects  of  deferment  in  seeking  that  solution  of  his  own  problem  which  best 
compoi-ts  with  the  national  interest. 

My  present  object  is  to  lu-ge  upon  employers  the  duty  and  responsibility  of  becoming 
well  advised  in  all  these  matters,  of  equipping  themselves  ^vith  full  information  as 
to  the  extent  to  which  their  particular  establishment  is  affected  by  the  liability  of 
registrants  to  military  ser\ice,  of  observing  the  extent  to  which  other  influences  of 
depletion  have  affected  it  and  the  degree  in  which  other  methods  of  supply  can 
relieve  that  depletion,  and  of  laying  these  facts  and  other  pertinent  ones  before  the 
industrial  advisers  now  to  be  placed  at  each  district  board,  to  the  end  that  those 
indi\dduals  or  groups  who  are  indispensable  and  irreplaceable  should  receive  defer- 
ment, whether  or  not  they  have  made  claim  for  it,  and  that  the  Army  and  the  Navy 
should  not  be  deprived  of  its  proper  supply  of  man  power  by  ill-considered  deferments 
not  absolutely  demanded  by  the  national  interest. 


The  cessation  of  enlistments  will  henceforth  protect  industry  against  one  iiTeguIar 
and  uncontrollable  source  of  derangement.  It  will  correspondingly  throw  upon  the 
eelective-draft  system  the  greater  responsibility  for  an  intelligent  and  discriminating 
selection  made  in  the  light  of  industrial  needs.  But  this  responsibility  if  shared 
by  employers  and  all  who  represent  groups  of  workers.  To  fulfill  this  responsibility 
they  must  now  prepare  themselves  even  more  carefully  than  hitherto.  They  will 
find  the  boards  heartily  ready  to  cooperate  with  them  to  the  utmost. 

The  keynote  of  purpose  for  all  of  us  ought  to  be,  and  I  am  sure  will  be,  that  wise 
and  profoundly  significant  phrase  in  the  act  of  Congress  under  which  we  operate, 
"the  maintenance  of  the  Military  Establishment  or  the  effective  operation  of  the 
military  forces,  or  the  maintenance  of  national  interest  during  the  emergency." 


Circular    No.  58. 

Washington,  D.  C,  September  25,  WIS. 
The  Committee  on  Health  and  Medical  Rehef  for  the  United  States 
Railroad  Administration  is  hereby  appointed,  consisting  of  the  fol- 
lowing : 

Dr.  D.  Z.  Dunott,  Chairman, 
Dr.  G.  W.  Cale,  Jr., 
Dr.  Victor  G.  Heiser, 
Dr.  T.  R.  Crowder, 
Dr.  H.  M.  Bracken. 
The  committee  will  establish  an  office  in  Washington  and  wOl 
conduct  a  survey  of,   and  submit  recommendations  in  connection 
with,  the  proper  protection  of  the  health  of  employees  and  patrons 
of  the  raUroads  under  Federal  control. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular   No.  59. 

Washington,  September  30,  191S. 
All  banks  and  trust  companies  in  which  funds  of  the  U.  S.  Railroad 
Administration  or  of  the  various  Federal  Treasurers  are  deposited 
will  be  notified  that  in  future  they  will  be  required  to  pay  interest  at 
the  following  rates : 

On  deposits  payable  by  check  on  demand 2%  per  annum. 

On  time  deposits  payable  after  thirty  days  from  date  or  after  thirty 
days'  notice 3%  per  annum. 

These  rates  will  apply  to  all  railroad  deposits  in  all  banks  except  in 
special  cases  where,  because  of  the  smallness  of  the  account  or  the 
particularly  fluctuating  character  of  the  balance,  it  may  be  considered 
proper  not  to  require  the  payment  of  interest. 

An  investigation  recently  made  shows  that  the  rates  of  interest 
allowed  by  banks  which  pay  interest  on  railroad  deposits  has  ranged 


399 

all  the  way  from  2%  to  5%  per  annum,  and  the  higher  rates  paid 
have  been  used  by  some  banks  as  an  excuse  for  excessive  rates  charged 
to  customers. 

The  Director  General  expects  banks  designated  as  railroad  deposi- 
taries to  observe  faithfully  the  interest  laws  of  their  respective  States 
and  not  to  charge  rates  of  interest  in  excess  of  those  permitted  by  law. 

It  is  of  great  importance  to  the  pubHc  welfare,  to  the  financing  of 
the  war,  and  to  the  commerce  of  the  Nation  that  interest  rates 
throughout  the  Country  shall  be  kept  at  a  moderate  level  or  within  a 
reasonable  range. 

W.  G.  McAuoo, 
Director  General  of  Railroads. 


Circular  No.  60. 

Washington,  Octoher  22^  1018. 

Effective  October  8,  1918,  the  Marine  Insurance  Section  has  been 
established  in  the  Division  of  Finance  and  Purchases  and  Mr. 
William  C.  DeLanoy  appointed  Manager  thereof  with  office  in 
Washington,  D.  C.  In  supervising  this  Section  Mr.  John  Skelton 
Williams,  the  Director  of  the  Division,  will  be  assisted  by  Mr. 
Theodore  H.  Price,  Actuary  of  the  Railroad  Administration. 

The  Marine  Insurance  Section  will  be  charged  with  the  duty  of 
providing  for  such  insurance  as  the  Director  General  may  desire 
against  marine  and  war  risks  on  vessels  and  floating  equipment 
under  the  control  of  the  United  States  Railroad  Administration,  and 
on  the  contents  of  such  vessels  and  floating  equipment,  and  with 
adjustment  of  marine  insurance  losses,  and  shall  perform  such  other 
duties  as  may  be  assigned  to  it  by  the  Director  General  as  to  insurable 
risks  connected  with  the  operation  of  such  vessels  and  floating  equip- 
ment. 

W.  G.  McAdoo, 
Director  General  of  RailrooAU. 


CiRCULu^R  No.  61. 

Washington,  Octoher  2-J,  1918. 
To  relieve  the  railroad  telephone  and  telegraph   facilities   from 
unnecessary  business  the  following  rules  are  issued : 

1.  Use  the  telegraph  and  telephone  only  when  the  mail  will  not 

answer  the  purpose. 

2.  Send  by  mail  messages  written  late  in  the  day,  on  Saturday 

afternoons,  Sundays  or  holidays  which  can  not  be  acted 
upon  at  once  and  which  will  reach  their  destination  by  mail 
in  ample  time  for  action. 


400 

3.  Omit  superfluous  words;  avoid  unnecessary  file  numbers  and 

references— BE  BRIEF. 

4.  Use  telegraph  code  systems  where  it  will  effect  a  saving. 

5.  Limit  the  use  of  telephone  facilities,  both  railroad  and  com- 

mercial,   to   railroad   business    and    to    the    shortest    time 
practicable. 

6.  The  Telegraph  Section,  Division  of  Operation,  will  establish 

an  effective  system  of  censoring  with  a  view  of  reducing 
the  number  and  length  of  telegraphic  communications. 

AV.  G.  McAdoo, 
Director  General  of  Railroculs. 


Circular  Xo.  62. 

Washington,  November  1,  1918. 
Effective  this  date,  Mr.  Charles  A.  Lutz  is  appointed  Treasurer  of 
the  United  States  Railroad  Administration  *  vice  Mr.  L.  G.  Scott 
(Comptroller  of  the  Wabash  Railway  Company),  Acting  Treasurer, 

resigned. 

W.  G.  MgAdoo, 

Director  General  of  Raxlroadn. 


Circular  Xo.  03. 

Washington,  November  5, 1018. 
The  war  has  caused  a  large  increase  in  the  volume  and  the  variety 
of  dangerous  articles  that  must  be  moved  over  the  railroads  in  the 
interests  of  the  national  defense,  and  the  frequent  necessity  for  the 
greatest  possible  expedition  in  these  movements  requires  expert  atten- 
tion so  as  to  minimize  the  danger  to  life  and  property  incident  to 
this  traffic. 

The  Bureau  for  the  Safe  Transportation  of  Explosives  and  other 
Dangerous  Articles  is  a  recognized  agency  of  the  United  States 
.  Railroad  Administration,  and  the  instructions  issued  by  this  Bureau 
are  with  the  approval  of  the  Director  General.  Operating  railroad 
officials  must  take  prompt  and  adequate  action  to  remedy  any  con- 
ditions on  their  lines  that  are  not  in  accord  with  the  requirements 
of  the  Federal  regulations  as  shown  by  the  reports  of  the  inspectors 
of  the  Bureau. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


401 

ClKCUI.AK    No.     64. 

Washington,  Novemher  22, 1918. 

A  practice  has  grown  up  by  which  officers  and  employees  of  rail- 
roads have  been  given  Christmas  and  other  holiday  presents  by 
shippers,  and  by  business  houses  who  furnish  supplies  and  materials 
to  railroads. 

AVhilc  in  many  instances  these  presents  do  not  represent  material 
value,  yet  the  practice  is  essentially  objectionable,  and  it  is  the 
policy  of  the  Railroad  Administration  that  it  should  be  discontinued 

entirelv. 

W.  G.  McAdoo, 
Director  GeTieral  of  Railroads. 


Circular  No.  65. 

Washington,  Xoi-rmher  22 ,  1918. 
To  All  Railroad  Companies: 

In  conformity  with  General  Order  No.  53,  Railway  Board  of  Ad- 
justment No.  3  met  in  the  City  of  Washington  at  its  office,  Room 
70-2-A.  Southern  Railway  Building,  Washington,  D.  C,  and  have 
organized  and  are  ready  for  the  transaction  of  such  business  as  may 
come  before  it  as  provided  in  General  Order  No.  53. 

The  officers  and  members  of  this  Board  are  as  follows: 

H.  A.  Kennedy.  Chairman.  S.  N.  Harrison. 

T.  H.  Gerrey,  Vice  Chairman.  F.  Hartenstein. 

Richard  P.  Dee.  G.  E.  Kipp. 

E.  A.  Gould.  W.  A.  Titus. 

The  Board  has  designated  the  following  dates  as  the  beginning 
of  each  of  its  regular  monthly  meetings  during  the  remaining  por- 
tion of  the  year  1918  and  for  the  year  1919: 

December  11,  1918.  June  4,  1919. 

January  8,  1919.  July  9,  1919. 

February  5,  1919.  August  6,  1919. 

March  5,  1919.  September  4,  1919. 

April  2,  1919.  October  1,  1919. 

May  7,  1919.  November  5,  1919. 

Attention  is  called  to  the  provisions  of  the  memorandum  of  under- 
standing annexed  to  General  Order  No.  53,  as  follows: 

Article  10  provides  the  n)anner  in  which  controversies  will  be 

submitted  to  the  Board  through  the  Division  of  Labor  of  the  United 

States  Railroad  Administration.     Every  case  submitted  should  be 

accompanied  by  evidence  that  its  submission  is  approved  by  the 

105889°— 19 26 


402 

Chief  Operating  Officer  of  the  Railroad  upon  which  the  controversy 
has  arisen  and  by  the  Chief  Executive  Officer  of  the  Organization 
concerned.  Where  two  or  more  organizations  are  jointly  concerned, 
the  submission  should  be  joint,  if  practicable. 

Article  11  expressly  precluded  a  consideration  by  the  Railway 
Board  of  Adjustment  No.  3  of  any  matter  unless  officially  referred 
to  it  in  the  manner  prescribed  in  the  memorandum  of  understand- 
ing. 

Article  14  requires  that  in  each  case  an  effort  should  be  made  to 
present  a  joint  concrete  statement  of  facts  as  to  any  controversy. 
Statements  of  fact,  whether  joint  or  separate,  should  be  sufficiently 
comprehensive  to  give  an  understanding  of  the  controversy  that  the 
Board  is  called  upon  to  decide.  Where  briefs,  or  additional  evidence 
are  to  follow,  notice  thereof  should  accompany  the  submission. 
Where  additional  matter  is  to- follow  the  submission,  the  case  will  not 
be  transmitted  to  the  Board  of  Adjustment  by  the  Division  of  Labor 
until  the  additional  data  shall  ha^-e  been  received. 

It  is  requested  that  three  copies  of  the  joint  concrete  statement  be 
filed  with  the  Division  of  Labor  for  matter  of  record  and  for  infor- 
mation of  the  Board.  Briefs  and  documentary  evidence  need  not 
be  furnished  in  duplicate,  but  w4ienever  i)ossible,  should  be  attached 
to  the  three  copies  of  the  joint  statement. 

It  will  be  noted  that  Supplement  No.  6  to  General  Order  No.  27, 
bearing  date  of  August  30th,  1918,  has  modified  Article  9  of  General 
Order  53  to  the  extent  that  interpretations  to  wage  orders  will  be 
issued  in  accordance  with  the  provisions  of  Supplements  6  and  6-A. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


CiRCULAU   No.    60. 

Washington,  December  1,  1918. 
P^ffective  this  date  the  following  railroads  are  transferred  from 
the  Eastern  to  the  Allegheny  Region: 

1.  Pennsylvania  Lines  west  of  Erie  and  Pittsburgh;  Cincin- 
nati, I^banon  &  Northern  Railway  and  Lorain,  Ashland  & 
Southern  Railroad.  Mr.  G.  L.  Peck.  Federal  Manager,  Pitts- 
burgh, Pa. 

2.  Baltimore  &  Ohio  Railroad  west  of  Parkersburg  and  Pitts- 
burgh, and  Dayton  &  Union  Railroad,  Mr.  C.  W.  Galloway, 
Federal  Manager,  Cincinnati,  Ohio. 

Until  otherwise  advised  by  Regional  Director  Markham,  Mr.  H.  A. 
Worcester,  District  Director,  will  in  respect  of  these  properties  con- 


403 

tiniie  in  his  present  capacity,  reporting  to  Mr.  Markhani,  and  in 
respect  of  the  lines  under  his  jurisdiction  in  the  Eastern  Kegion 
reporting  to  Regional  Director  Smith. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  Xo.  G7. 

Washington,  December  J,  1918. 

In  cases  of  loss  of  or  damage  to  property  by  fire  wliile  under  Fed- 
eral control,  the  matter  should  be  handled  on  the  following  basis: 

First:  Reports  of  all  fires  involving  property  under  Federal  con- 
trol are  to  be  made  in  accordance  with  instructions  heretofore  or  here- 
after issued  by  the  Regional  Directors  as  directed  by  the  Division  of 
Finance  and  Purchasas  Fire  Loss  Protection  Section. 

Seco7id:  In  the  case  of  damage  by  fire  to  any  property'  under  Fed- 
eral control,  other  than  rolling  stock  equipment,  which  will  be  gov- 
erned by  special  rules  or  practices  now  or  hereafter  in  force,  there 
should  be  an  immediate  determination  by  the  Federal  Manager,  sub- 
ject to  the  approval  of  the  Regional  Director,  as  to  rebuilding. 

Third :  If  the  decision  is  to  rebuild  either  in  kind  or  on  a  different 
plan  or  with  enlargements,  the  Federal  Manager,  with  the  approval 
of  the  Regional  Director,  shall  determine  upon  such  expenditures  as 
may  be  required  for  the  replacement  of  property  in  so  far  as  such 
expenditures  are  chargeable  to  operating  expenses.  The  approval  of 
the  Director  of  the  Division  of  Capital  Expenditures  shall  be  secured 
in  all  cases  involving  expenditures  chargeable  to  additions  and  better- 
ments. 

Fourth:  Adjustments  of  fire  losses,  other  than  loss  of  rolling  stock 
equipment,  are  to  be  made  as  between  the  corporation  and  the  United 
States  Railroad  Administration  as  follows: 

An  immediate  effort  should  be  made  through  the  staffs  of  the  Fed- 
eral Managers  to  arrive  at  an  agreement  with  the  corporation  as  to 
the  value  of  the  property  of  the  corporation  destroj'ed  or  the  amount 
of  the  damage  due  to  the  fire  at  the  time  of  the  fire,  in  case  the  prop- 
erty is  not  restored  or  replaced,  or  as  to  the  cost  of  restoration  or  re- 
placement thereof,  chargeable  to  operating  expenses,  and  the  cost  of 
such  part  of  the  restoration  or  replacement  as  is  chargeable  to  invest- 
ment in  road  and  equipment,  respectively.  Such  agreement  shall  be 
subject  to  the  approval  of  the  Regional  Director  and  of  the  Directors 
of  the  Divisions  of  Finance  and  Purchases  and  of  Public  Service  and 
Accounting  and  shall  be  filed  by  the  Federal  Manager  with  his  Fed- 
eral Auditor.    In  case  of  failure  to  agi'ee  with  the  corporation,  the 


404 

amounts  chargeable  shall  be  determined  under  regulations  established 
by  the  Director  of  Public  Service  and  Accounting. 

W.  G.  McAdoo, 
Director  General  of  Railroads. 


Circular  No.  68. 

Washington,  December  26,  191S. 

Effective  this  date  the  Pittsburgh  &  Lake  Erie,  the  Monongahela, 

the  Pittsburgli  &  West  Virginia,  and  the  West  Side  Belt  Railroad 

are  transferred  from  the  Allegheny  Region  to  the  Eastern  Region, 

and  the  Grand  Rapids  &  Indiana  Railroad  is  transferred  from  the 

Eastern  Region  to  the  Allegheny  Region. 

*=  W.  G.  McAdoo, 

Director  General  of  Railroads. 


Circular  No.   69. 

Washington,  December  SO.,  WIS. 

Effective  January  1,  1919,  the  Secret  Service  branch  of  the  Claims 
and  Property  Protection  Section  of  the  Division  of  Law  is  termi- 
nated, and  instead  thereof  the  Secret  Service  and  Police  Section  of 
the  Division  of  Operation  is  created. 

Mr.  W.  J.  Flynn  is  appointed  Chief  of  the  Secret  Service  and 
Police  Section,  with  office  in  Southern  Railroad  Building,  Washing- 
ton, reporting  to  the  Director,  Division  of  Operation,  effective 
January  1,  1919. 

The  Chief  of  the  Secret  Service  and  Police  Section  will  deal 
through  the  Regional  Directors  as  to  matters  affecting  the  Police 
Service  of  the  various  railroads  under  the  jurisdiction  of  the  several 

Regional  Directors. 

^  W.  G.  McAdoo, 

Director  General  of  Railroads. 


INDEX  TO  GENERAL  ORDERS. 

Account  books,  new  and  3e])arate,  to  be  opened,  carriers  by  water. ...     G.  O.  No.  52 

Account,  capital,  work  involving  charges  to G.  O.  No.  12 

Accounting,  carriers  by  water G.  O.  No.  52 

Accounting,  date  beginning G.  O.  No.    2 

Accounting  officer,  chief,  when  in  general  charge  of  one  or  more  accounting 
organizations  of  the  Director  General  shall  be  designated  "Federal  auditor," 
must  obtain  express  authority  (except  in  special  cases)  to  perform  any  services 

for  a  railroad  corporation G.  O.  No.  41 

Accounting,  rules  and  regulations G.  O.  No.  17 

Accounting,  for  use  of  equipment  and  facilities G.  O.  No._31 

Accounts  and  bills,  interroad G.  O.  No.  30 

Accounts,  examination  and  checking  of  bills G.  O.  No.  20 

Accounts,  interline  passenger G.  O.  No.  32 

Acquisition  and  construction  of  equipment G.  O.  No.  35 

Actions  at  law,  suits  to  be  brought  directly  against  Director  General. .     G.  O.  No.  50 
Additions  and  betterments  costs,  bills  by  one  carrier  against  another   carrier 

under  Federal  control G.  O.  No.  47 

Additions  and  betterments  made  to  floating  equipment,  water  lines  under 

Federal  control G.  O.  No.  52 

Additions  costing  more  than  |1,000 G.  O.  No.  12,  Sup.  No.  1 

Adjustment  Board  No.  1 G.  O.  No.  13 

G.  O.  No.  27 

Adjustment  Board  No.  2 G.  O.  No.  29 

Adjustment  Board  No.  3 G.  0.  No.  53 

Adjustment  of  certain  disputes  between  American  Railway  Express  Co.  and 
its  employees,  di\dsion  of  lal)or  of  United  States  Railroad  Administration 

named  as  tribunal G.  O,  No.  54 

Advances  in  all  express  rates  and  charges  on  all  traflic  carried  by  the  American 
Railway  Express  Co.  taken  under  Federal  control  under  act  of  Congress  ap- 
proved Aug.  29,  1918 G.  O.  No.  56 

Advertising,  newspaper,  issuing  passes  account  of G.  O.  No.  6,  Sup.  No.  1 

G.  O.  No.  6,  Sup.  No.  2 
Agency  relief  claims    undercharges  and  overcharges,  disposition  of..     G.  O.  No.  55 
Agent  telegraphers  and  telephoners,  rates  of  pay.  rules  for  overtime  and  work- 
ing conditions  (superseding  G.  O.  No.  27  and  in  lieu  thereof) 

G.  O.  No.  27,  Sup.  No.  10 
G.  O.  No.  27,  Sup.  No.  13 

Agents,  expenditures  for G.  O.  No.    6 

Agents,  rates  of  pay  (Art.  I)  (superseding  G.  O.  No.  27  and  in  lieu  thereof) 

G.  O.  No.  27,  Sup.  No.  11 
G.  O.  No.  27,  Sup.  No.  13 

Agents  of  steamship  lines,  status  of G .  O.  No.  19 

Agreement  providing  for  basis  of  compensation  and  regulations  of  employ- 
ment      G.  O.  No.  53 

(405) 


406 

Agreements,  rates  of  pay  and  rules  (Art.  IX)  (superseding  G.  O.  No.  27  and 

in  lieu  thereof) G.  O.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  11 
G.  0.  No.  27,  Sup.  No.  13 
Agreements  between  regional  directors  with  chief  executive  officers  of  order 
of  Railroad  Telegraphers,  Switchmen's  Union  of  North  America,  Brother- 
hood of  Railway  Clerks,  and  United  Brotherhood  of  ]\Iaintenance  of  Way 

Employees G.  O.  No.  53 

Aishton,  R.  II.,  agreement  between  regional  directors  and  labor  unions  G.  O.  No.  53 

Aishton,  R.  H.,  regional  director G.  O.  No.    4 

Alaska,  transportation  charges G.  O.  No.  25-A 

Allied  nations,  transportation  charges G.  0.  No.  25-A 

Amalgamated  Sheet  Metal  Workers'  International  Alliance G.  0.  No.  29 

American  Railway  Association,  daylight  saving  law G.  O.  No.  14 

American  Railway  Express  Co.  and  its  employees,  tribunal  named  for  adjust- 
ment of  disputes G.  O.  No.  54 

American  Railway  Express  Co.,  increase  of  operating  revenues G.  0.  No.  56 

American  Railway  Express  Co.,  matters  presented  by  officers  and  employees 

of,  investigated  by  board  of  railroad  wages  and  working  conditions 

G.  O.  No.  27,  Sup.  No.  9 

American  Red  Cross  transportation  charges G.  O.  No.  25-A 

Appeal,  right  of,   by  employees  or  representatives  (Art.   VII)   (superseding 

G.  O.  No.  27  and  in  lieu  thereof) G.  O.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  11 
G.  O.  No.  27,  Sup.  No.  13 
Application  for  interpretation  of  wage  order  (where  differences  of  opinion  ne- 
cessitating formal  interpretation  arise)  to  be  made  by  regional  director, 
chief  executives,  chairmen  railway  boards  of  adjustment,  or  director  of  di- 

\dsion  of  labor G.  O.  No.  27,  Sup.  No.  6-A 

Appointment  of  G.  A.  Tomlinson G.  O.  No.  33 

Apportionment  of  revenues G.  O.  No.  32 

Approval,  filling  of  vacancies G.  O.  No.  9 

Assistant  passenger  ticket  agent  performing  work  of  city  ticket  agent  tempo- 
rarily, rate  of  pay,  question  and  decision G.  O.  No.  27,  Interp.  No.  7 

Assistants  and  tenders G.  O.  No.  27,  Sup.  No.  8 

Associations  of  carriers,  expenditm-es  account  of G.  O.  No.    0 

Attachment,  garnishment,  or  like  process.     See  Garnishment G.  O.  No.  43 

Attorneys,  employment  of,  expenditures  account G.  O.  No.    6 

Attorneys,  officers  and  employees  in  railroad  service,  rules  regulating  political 

activity G.  O.  No.  48 

(Substituted  for  G.  O.  No.  42  and  Sup.  No.  1  thereto) 
Auction,  nonperishable  freight  refused  or  unclaimed  at  destination  by  con- 
signees, after  00  days  to  be  sold  at  auction  by  carriers G.  O.  No.  34-A 

(Substituted  for  G.  O.  No.  34) 

Auditor,  services  of  (see  accounting  officer,  chief) G.  O.  No.  44 

Authority  and  duties  of  Board  of  Railroad  Wages  and  Working  Conditions 

extended G.  O.  No.  27,  Sup.  No.  6 

Authority,  executive G.  O.  No.  16 

Back  pay  as  in  General  Order  No.  27,  employee's  and  employer's  claim,  deci- 
sion      G.  O.  No.  27,  Interp.  4 

Back  time  payments G.  O.  No.  27,  Sup.  No.  4 

Baggage  charges,  increase G.  O.  No.  28 

Baggage  charges,  rules G.  O.  No.  25 


407 

Bao'^aee  collections,  excess,  local  and  interline,  standard  form  for  reports 

"^    a  '  Q     Q     JT^     49 

Bagffaffe  revenues,  excess,  apportionment  of G.  0.  No.  32 

BaS4emen,payof ''■''■'''■  r'a^Z  21 

Bases  for  apportioning  inter-road  freight  revenues (jr.  u.  rs o.  ^i 

Basic  minimum  rate.     (Art.  ID  (superseding  G.  O.  No.  27  and  in  lieu  thereof) 

G.  0.  No.  27,  Sup.  No.  10 
G.  O.  No.  27,  Sup.  No.  13 
Basic  trades,  helpers  in,  compensation.     G.  O.  No.  27,  Sup.  No.  4,  Amendment  No.  1 
Basis  of  compensation  and  regulation  of  employment,  agreement  providing  for 

G.  O.  No.  53 

Behavior  of  employees  to  public G-  9'  ^^-  "^^ 

Betterments  and  additions  costs,  bills  by  one  carrier  against  another  carrier 

under  Federal  control G.  0.  No.  47 

Betterments  and  additions  made  to  floating  equipment,  water  lines  under 

Federal  control G.  0.  No.  52 

Betterments  costing  more  than  $1,000 G.  0.  No.  12,  Sup.  No.  1 

Bills  and  accounts,  inter-road G.  0.  No.  30 

Bills,  car  repairs ^-  n    at*"' on 

Bills,  for  joint  facilities G.  O.  No.  ^0 

Bills,  operating,  checking  of ----     Gr.  0.  No.  20 

Bills,  rendered  account  of  errors  in  charges G.  0.  No.  25 

Bills  for  repairs,  by  one  carrier  against  another  carrier  under  Federal  control.. 

^  G.  0.  No.  47 

Blacksmith  apprentices G.  O.  No.  27,  Sup.  No.  4 

Blacksmith  helpers G.  O.  No.  27,  Sup.  No.  4 

Blacksmiths G.  O.  No.  27,  Sup.  No.  4 

G.  O.  No.  27,  Sup.  No.  4,  Addendum  No.  2 
Blacksmiths  and  helpers  engaged  in  work  on  interlocking  and  signaling  systems 

rates  of  pay,  question  and  decision G.  O.  No.  27,  Sup.  No.  4,  Interp.  No.  2 

Block  operators,  rates  of  pay,  rules  for  overtime  and  working  conditions  (super- 
seding G   O.  No.  27  and  in  lieu  thereof) G.  0.  No.  27,  Sup.  No.  10. 

G.  0.  No.  27,  Sup.  No.  13 

Board  of  Adjustment  No.  1 G-  0.  No.  13 

■*  G.  O.  No.  27 

Board  of  Adjustment  No.  2 G.  0.  No.  29 

Board  of  Adjustment  No.  3 G.  O.  No.  53 

Board  of  Railroad  Wages  and  Working  Conditions,  duties  and  authority  are 
extended  to  include  investigations  and  recommendations  to  the  Director 
General  of  interpretations  of  all  such  wage  orders,  when  requested  to  do  so 

by  director  of  Division  of  Labor G.  0.  No.  27,  Sup.  No.  6 

Board  of  Railroad  Wages  and  Working  Conditions  to  investigate  matters  pre- 
sented bv  officers  and  employees  of  American  Railway  Express  Co. .     G.  O.  No.  27, 

Sup.  No.  9 

Boards  of  directors,  status G.  0.  No.  16 

Boilermaker  apprentices '-     G.  O.  No.  27,  Sup.  No.  4 

Boilermaker  helpers G.  O.  No.  27,  Sup.  No.  4 

Boilermakers G.  0.  No.  27,  Sup.  No.  4 

G.  0.  No.  27,  Sup.  No.  4,  Addendum  No.  2 

Bonds,  fidelity,  premiums  on -' G-  O.  No.  36 

Books,  corporate,  carriers  by  water Cr.  O.  No.  oL 

Books,  Federal,  carriers  by  water -^    Cr.  0.  No.  52 

Books,  new  and  separate,  to  be  opened,  referred  to  as  "Federal  books,"  carriers 

bv;ater G.  0.  No.  52 


408 

Brakemen,  passenger,  or  flagmen  (Art.  VI,  G.  O.  No.  27). .     G.  O.  No.  27,  Sup.  No.  12 

Brakemen,  pay  of G.  O.  No.  27,  Interp.  1 

Bridge  and  house  carpenters,  rates  of  pay,  question  and  decision G.  O.  No.  27, 

Sup.  No.  8,  Interp.  No.  2 

Brotherhood  of  Locomotive  Engineers G.  O.  No.  13 

Brotherhood  of  Locomotive  Firemen  and  Engineers G.  O.  No.  13 

Brotherhood   of  Maintenance  of  Way  Employees,   agreement  ^vith  regional 

directoi-s G.  O.  No.  53 

Brotherhood  of  Railroad  Trainmen G.  O.  No.  13 

Brotherhood  of  Railway  Carmen  of  America G.  O.  No.  29 

Brotherhood  of  Railway  Clerks,  agreement  with  regional  directors G.  O.  No.  53 

Builders,  car G.  0.  No.  27,  Sup.  No.  4,  Addendum  No.2 

Bulk  grain  loading G.  0.  No.  57 

Bush,  B.  F.,  agreement  between  regional  directors  and  laljor  unions  ..     G.  0.  No.  53 

Calls,  pav  for  (Art.  IV) G.  0.  No.  27,  Sup.  No.  7,  Interp.  No.  1 

G.  0.  No.  27,  Sup.  No.  8,  Interp.  No.  1 

Calls  to  work  (Art.  V)  (superseding  G.  O.  No.  27  and  in  lieu  thereof) 

G.  O.  No.  27,  Sup.  No.  10 
G.  O.  No.  27,  Sup.  No.  13 

Calls  to  work  {Ait.  VI)  (superseding  G.  O.  No.  27  and  in  lieu  thereof) 

G.  O.  No.  27,  Sup.  No.  H 
G.  O.  No.  27,  Sup.  No.  13 

Capital  account,  work  involving  charges  to G.  0.  No.  12 

Capital  account,  work  involving  charges  to,  of  $1,000  or  more,  $10,000  or  more, 

and  $25,000  or  more G.  O.  No.  12,  Sup.  No.  1 

Car  department  employees G.  0.  No.  27,  Sup.  No.  4,  Addendum  No.  2 

Carload  and  L.  C.  L.  nonperishable  freight,  refused  or  unclaimed  at  destina- 
tion by  consignees,  after  60  days  to  be  sold  at  public  auction  by  carriers 

G.  0.  No.  34-A 
(Substituted  for  G.  O.  No.  34) 

Carmen G.  O.  No.  27,  Sup.  No.  4 

G.  O.  No.  27,  Sup.  No.  4,  Addendum  No.  2 

Car  repairs,  bills • G.  O.  No.  20 

Car  seal  records G.  O.  No.  41 

Carpenters G.  O.  No.  27,  Sup.  No.  4,  Addendum  No.  2 

Carpenters,  bridge  and  house,  rates  of  pay,  question  and  decision.  ...     G.  0.  No.  27, 

Sup.  No.  8,  Interp.  No.  2 
Carrier  corporations,  suits  against,  for  which  they  are  not  responsible,  to  be 

brought  directly  against  the  Director  General G.  0.  No.  50 

Carriers'  associations,  expenditiu'es  for G.  0.  No.    6 

Carriers,  bills  for  repairs  by  one  carrier  against  another  carrier  under  Federal 

Control G.  O.  No.  47 

Carriers,  common,  laws  and  liabilities  to  which  subject G.  O.  No.  18 

Carriers,  suits  against G.  O.  No.  18-A 

Gamers  bv  water,  rules,  regulations  governing,   transactions  of,   accounting 

G.  O.  No.  52 
Care,  bills  for  repairs  by  one  carrier  against  another  carrier  under  Federal 

control .' G.  0.  No.  47 

Cars  for  bulk  grain  loading G.  O.  No.  57 

Cash  basis  transportation  charges G.  O.  No.  25 

G.  O.  No.  25-A 

Cash  report,  weekly G.  0.  No.  23 

G.  O.  No.  23,  Sup.  No.  1 

Cash  representing  receipts  since  and  including  Jan.  1 ,  1(118 G.  O.  No.  37 

G.  O.  No.  37-A 


409 

Chairmen  of  boards  of  directors,  status ; G.  O.  No.  16 

Charge.",  baggage,  increase G.  O.  No.  28 

Charges,  baggage,  rules G.  O.  No.  25 

Charges  to  capital  account G.  O.  No.  12 

Charges,  freight G.  0.  No.  25 

Charges,  storage,  rules G.  0.  No.  25 

Charges,  toll , Cx.  O.  No.  33 

Charges,  transportation,  basis G.  0.  No.  25 

Charges,  transportation,  collection  of G.  0.  No.  2o-A 

Charges,  transportation,  collection  of,  disposition  of  oA-ercharges,  undercharges, 

and  agency  relief  claims G.  0.  No.  55 

Check,  specimen,  heading  to  be  changed G.  O.  No.  37-A 

Checking  of  operating  Vjills G.  0.  No.  20 

Chief  accounting  officer,  designation,  services.     (See  accounting  officer,  chief.) 

G.  0.  No.  44 
Chief  executives,  chaii-men  railway  boards  of  adjustment,  application  for  inter- 
pretation of  wage  order G.  O.  No.  27,  Sup.  No.  6-A 

Chore  boys,  pay,  rules G.  0.  No.  27,  Sup.  No.  7 

Citv  ticket  agent,  rate  of  pav  for  temfwrary  work,  question  and  decision 

G.  0.  No.  27,  Interp.  7 
Claim  for  death  or  iujiuv,  suits  to  be  brought  directlv  against  Director  General 

G.  0.  No.  50 
Claim  of  employee,  rate  of  pay  for  temporary  work  as  city  ticket  agent,  question 

and  decision. G.  O.  No.  27,  Interp.  7 

Claim,  employee's  and  employer's,  increase  of  salary  as  in  General  Order  No.  27, 

decision G.  O.  No.  27,  Interp.  5 

Claim,  employer's  and  employee's,  back  pay  as  in  General  Order  No.  27,  deci- 
sion  .' G.  0.  No.  27,  Interp.  4 

Claims,  agency  relief,  overcharges  and  undercharges,  disposition  of G.  0.  No.  55 

Claims,  checking  of  bills  for G.  0.  No.  20 

Claims,  freight,  for  loss  and  damage G.  0.  No.  41 

Claims  (jurisdiction  of  com-t ) G.  0.  No.  26 

Claims  for  loss'  and  damage  of  grain,  disposition  of G.  0.  No.  57 

Classification  and  preservation  of  rates  (Art.  Ill)  (superseding  G.  O.  No.  27 

and  in  lieu  thereof) G.  O.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  11 
G.  O.  No.  27,  Sup.  No.  13 
Classifications,  regulations  and  practices,  express  rates  and  charges,  legends 

for  title  page  of  schedules G.  O.  No.  56 

Cleaners,  coach,  pay,  hours,  rules G.  O.  No.  27,  Sup.  No.  4,  Addendum  No.  1 

Clear  record  cars,  grain  loading G.  O.  No.  57 

Clerical  forces,  rates  of  pay  and  rules  for  overtime  and  working  conditions;  also 
apply  to  certain  employees  in  stations,  storage,  or  terminal  warehouses,  docks, 
storehouses,  shops,  and  vards,  upon  railroads  under  Federal  control     G.  0.  No.  27, 

Sup.  No.  7 
Clerks,  Railway,  Brotherhood  of,  agreement  with  regional  directors. . .     G.  O.  No.  53 
Clocks  and  watches  in  train  dispatchers'  offices  a.nd  in  all  other  offices  open  at 
2  a.  m.,  present  standard  time,  Sunday,  Oct.  27,  1918,  must  be  tiu'ned  back 

one  horn*  to  indicate  1  a.  m G.  O.  No.  45 

Clyde  Steamship  Co.,  control  of G.  O.  No.  19 

Coach  cleaners,  pay,  rules G.  O.  No.  27,  Sup.  No.  4,  Addendum  No.  I 

Collection  of  transportation  charges,  basis G.  0.  No.  25 

Collection  of  transportation  charges  and  disposition  of  o\ercharges,  under- 
charges, and  agency  relief  claims G.  O.  No.  55 


410 

Colored  brakemen,  compensation  and  ov-ertime  mles G.  O.  No.  27,  Sup.  No.  12 

Colors  used  for  two  classes  of  reports,  ticket  and  excess  baggage G.  O.  No.  49 

Commodity  rates,  both  interstate  and  intrastate,  American  Railway  Express 

Co.  (Section  II) G.  0.  No.  56 

Common  carriers,  laws  and  liabilities  to  which  subject G.  0.  No.  18 

G.  0.  No.  26 

Compensation,  basis  for G-  0-  No.  13 

Compensation,  basis  of  and  regulations  of  employment,  agreement  for.     G.  0.  No.  53 

Compensation,  employees' . . ". Interp.  3  to  G.  0.  No.  27  and  to  Sup.  No.  4, 

Addenda  Nos.  1  and  2,  Interp.  No.  1,  and  Amendment  No.  1  thereto 
Compensation  for  extra  services  (superseding  G.  0.  No.  27  and  in  lieu  thereof) 

G.  O.  No.  27,  Sup.  No.  10 
G.  0.  No.  27,  Sup.  No.  13 

Compensation,  helpers  in  basic  trades,  inequities  removed G.  0.  No.  27, 

Sup.  No.  4,  Amendment  No.  1 
Compensation  rates  for  certain  classes  of  employees  (specified  in  the  respective 
shop  crafts)  who  have  heretofore  received  a  rate  in  excess  of  the  established 
minimum  rate  and  rates  of  compensation  for  classes  of  employees  named  in 
section3  5  and  6  of  General  Order  No.  27  which  were  not  included  in  Supple- 
ment No.  4 G.  O.  No.  27,  Sup.  No.  4,  Addendum  No.  2 

Competition,  American  Railway  Express  Co.,  with  employees  in  other  indus- 
tries investigations  by  Board  of  Railroad  Wages  and  Working  Conditions. .. 

G.  O.  No.  27,  Sup.  No.  9 

Complaint,  American  Railway  Express  Co.  and  its  employees G.  O.  No.  54 

Complaints,  courtesy  must  be  shown  public G.  O.  No.  40 

Composite  mechanics,  rates  of  pay,  question  and  decision G.  O.  No.  27, 

Sup.  No.  4,  Interp.  No.  2 

Conditions,  employment Interp.  1  to  G.  O.  No.  27,  Sup.  No.  4, 

and  to  Addendum  No.  2 

Conditions  of  employment,  hours,  wages G.  O.  No.  27,  Sup.  No.  4 

G.  O.  No.  27,  Sup.  No.  5 

Conductors'  hours  and  pay G.  0.  No.  27,  Sup.  No.  2 

Conductors,  pay  of G.  O.  N'o.  27,  Interp.  1 

G.  0.  No.  27,  Interp.  2 

Confiscated  freight,  confiscation  in  transit,  charges  of G.  O.  No.  55 

Consignees  refusing  non-perishable  freight,  auction  of,  by  carriers  after  60  days, 

notice  to,  concerning  shipments G.  O.  No.  34-A 

(Substituted  for  G.  0.  No.  34) 
Consolidated  ticket  offices,  standard  forms  for  reporting  ticket  sales  and  excess 

baggage  collections,  to  be  introduced  no  later  than  January  1,  1919. .     G.  O.  No.  49 

Construction  and  acquisition  of  equipment G.  O.  No.  35 

Construction  and  acquisition  of  equipment  for  New  York  Canal  section .     G.  O.  No.  22 

Construction,  maintenance,  and  operation  of  new  industry  tracks G.  O.  No.  15 

Contracts  for  construction,  acquisition,  or  chartering  of  e(iuii)ment G.  O.  No.  35 

Contracts,  exchange  of  advertising  for  free    railroad  transportation 

.      .  G.  O.  No.  6,  Sup.  No.  1 

G.  O.  No.  6,  Sup.  No.  2 
Contracts  Ijetween  Government  and  railroad  cumpanies. . .     G.  O.  No.  12,  Sup.  No.  1 

Contracts  for  industry  tracks G.  O.  No.  15,  Sup.  No.  1 

Contracts  for  transportation  of  traffic G.  O.  No.  35 

Control  of  railroads <^-  O-  No.    1 

Control  of  railroads,  accounting Cr.  0.  No.    2 

Control  of  sale  of  liquors  and  intoxicants G.  O.  No.  39 

Control  of  steamship  cdmpnnios G.  O.  No.  19 


411 

Controversies  between  American  Railway  Express  Co.  and  its  employees 

G.  O.  No.  54 

Controversies,  labor G.  0.  No.  29 

Controversies,  officers  and  employees  to  adjust  misunderstandings G.  0.  No.  53 

Controversy,  interpretations  of  wage  agreements  (Art.  II).     G.  0.  No.  27,  Sup.  No.  7, 

Interp.  No.  1 
G.  O.  No.  27,  Sup.  No.  8,  Interp.  No.  1 

Cooperation,  officials  and  emplovees  of  the  American  Railway  Express  Co 

G.  O.  No.  54 

Coopering  of  cars  for  l)ulk-grain  loading G.O.  No.  57 

Corporate  books,  carriers  jjy  water G.  O.  No.  52 

Counties,  transportation  charges G.  O.  No.  25-A 

Courtesy  to  public G.  O.  No.  40 

Codington,  Harry,  Railroad  Wage  Commission G.  O.  No.    5 

Crafts,  mechanics  performing  work  of  two  or  more  crafts,  rates  of  pay,  question 

and  decision G.O.  No.  27,  Sup.  No.  4,  Interp.  No.  2 

Cream  and  milk  mileage,  American  Railway  Express  Co G.  O.  No.  56 

Daily-paid  employees,  hourly  rate  (superseding  G.   O.   No.  27  and  in  lieu 

thereof) - G.  O.  No.  27,  Sup.  No.  10 

G.  0.  No.  27,  Sup.  No.  13 

Damage  claims  (jurisdiction  of  court) G.  O.  No.  26 

Damage  of  grain,  disposition  of  claims G.  O.  No.  57 

Dangerous  articles  or  explosives,  unclaimed  or  refused  shipments  of. .     G.  0.  No.  34-A 

(Substituted  for  G.  O.  No.  34) 

Daylight  saving G.  0.  No.  14 

Daylight  saving;  clocks  to  be  turned  back  at  2  a.  m.  present  standard  time, 
Sunday,  October  27,  1918;  all  clocks  and  watches  in  train  dispatchers'  offices 
and  in  all  other  offices  open  at  that  time  must  be  turned  back  one  hour  to 
indicate  1  a.  m.;  each  railroad  must  adopt  measures  necessary  to  properly 

safeguard  movement  of  its  trains  at  time  of  change G.  0.  No.  45 

Death,  claim  for,  suits  to  be  brought  directly  against  Director  General. .     G.  O.  No.  50 

Debts,  railroad  employees  (see  Garnishment  t G.O.  No.  43 

Decision  and  question,  bridge  and  house  carpenters,  rates  of  pay G.  O.  No.  27, 

Sup.  No.  8,  Interp.  No.  2 

Decision  and  question,  city  ticket  agent,  rate  of  pay  for  temporary  work 

G.  O.  No.  27,  Interp.  7 
Decision  and  question,  rates  of  pay  for  mechanics  engaged  in  work  on  inter- 
locking and  signaling  systems G.  O.  No.  27,  Sup.  No.  4,  Interp.  No.  2 

Decision  and  question,  station  agent  doing  special  service,  rate  of  pay. .  G.  O.  No.  27, 

Interp.  6 

Defective  record  cars,  grain  loading G.  O.  >. o.  57 

Definition,  cars  for  grain  loading G.  O.  No.  57 

Delegates  to   political   conventions,    railroad   employees  holding  municipal 

offices G .  O .  No .  48 

(Substituted  for  G.  O.  No.  42  and  Sup.  No.  1  thereto) 

Delivery  of  astray  freight G.  O.  No.  41 

Demurrage G.  O.  Ino.    3 

G.  O.  No.    7 
Department,  maintenance  of  way;  rates  of  pay  and  rules  for  overtime  and  work- 
ing conditions  of  employees G.  O.  No.  27,  Sup.  No.  8 

Derrick  engineers  (sec.  6,  Art.  I,  Sup.  No.  4  to  G.  O.  No.  27),  Article  XII. .     Interp.  8 

to  G.  0.  No.  27  and  to  Sup.  No.  4,  Addenda  Nos.  1 

and  2,  Interp.  No.  1,  and  Amendment  No.  1  thereto 

Destination  weights,  grain  loading G.  O.  No.  57 


412 

Destroyed  equipment,  l)ills  })y  one  carrier  against  another  carrier  under  Federal 

control G.  O.  No.  47 

Destroyed  freight,  destruction  in  transit,  charges  for G.  O.  No.  55 

Differences  between  management  and  employees  (Art.  IX)  (superseding  G.  O. 

No.  27  and  in  lieu  thereof) G.  O.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  11 
G.  0.  No.  27,  Sup.  No.  13 
Differentials  in  established  rates  for  hourly  workers,  overtime  (Art.  VIII), 

G.  O.  No.  27,  Sup.  No.  7,  Interp.  1 

G.  O.  No.  27,  Sup.  No.  8,  Interp.  1 

Direr-tor  DiAision  of  Labor,  application  for  interpretation  of  wage  order.     G.  O.  No.  27, 

Sup.  No.  6-A 

Director  General,  suits  to  be  brought  directly  against G.  O.  No.  50 

Directors,  boards  of,  status G .  0 .  No.  16 

Directors,  train  and  tower,  rates  of  pay,  rules  for  overtime  and  working  condi- 
tions (suDerseding  G.  O.  No.  27  and  in  lieu  thereof)  ...     G.  0.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  13 

Discipline G.  O.  No.  27,  Sup.  No.    8 

Discipline  and  grievances G-  0.  No.  27,  Sup.  No.    7 

Discipline  and  grievances  (Art.  VII)  (superseding  G.  O.  No.  27  and  in  lieu 

thereof) G.  O.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Slip.  No.  11 
G.  O.  No.  27,  Sup.  No.'lS 

Discontinuance  of  use  of  industry  tracks G.  O.  No.  15,  Sup.  No.    1 

Disposition  of  claims  for  loss  and  damage  of  grain G.  O.  No.  57 

Disposition  of  overcharges,  undercharges,  and  agency  relief  claims G.  O.  No.  55 

Disputes  between  American  Railway  Express  Co.  and  its  employees,  tribunal 

named  for  adjustment Gr.  O.  No.  54 

District  of  Columbia  transportation  charges G.  O.  No.  25-A 

Division  of  Labor  of  the  United  States  Railroad  Administration  will  hear  and 
investigate  and  recommend  adjustments  of  any  disputes  between  American 
Railway  Express  Co.  and   its  employees  not  affecting  wages  and  working 

conditions G.  O.  No.  54 

Doors  of  cars  for  grain  loading G.  O.  No.  57 

Draft  boards,  members  of,  positions  not  construed  as  political  offices. . .     G.  O.  No.  48 

(Substituted  for  G.  O.  No.  42  and  Sup.  No.  1  thereto) 

Duplicate  payments,  collection  of  freight  charges G.  O.  No.  55 

Duties  and  authority  of  Board  of  Railroad  Wages  and  Working  Conditions  ex- 
tended      G.  0.  No.  27,  Sup.  No.  6 

Eastern  Railroads,  region Gr-  O.  No.  4 

Eastern  Region  created Gf .  O.  No.  4 

Eight  consecutive  hours,  exclusive  of  meal  period,  a  day's  work G.  O.  No.  27, 

Sup.  No.  4,  Addendum  No.  1 
Eight  consecutive  hours  a  days  work  (superseding  G.  O.  No.  27  and  in  lieu 

thereof) .' G.  0.  No.  27,  Sup.  No.  11 

G.  O.  No.  27,  Sup.  No.  13 

Eight-hour  day G.  O.  No.  27,  Sup.  No.    2 

Election  of  railroad  officials,  attorneys,  or  employees  to  political  offices  for- 
bidden except  if  elected  to  political  offices  prior  to  issuance  of  G.  O.  No.  42; 

such  terms  of  office  may  be  completed G.  O.  No.  48 

(Substituted  for  G.  O.  No.  42  and  Sup.  No.  1  thereto) 
Electric  welders G.  O.  No.  27,  Sup.  No.  4,  Addendum  No.  2 


413 

Electrical  Avorkers  (Sup.  Xo.  4,  Art.  I,  sees.  5  and  5-A),  Article  IX Interp.  .3 

to  G.  O.  No.  27  and  to  Sup.  No.  4,  Addenda  Nos.  1 
and  2,  Interp.  No.  1,  and  Amendment  No.  1  thereto 

Electrical  workers,  second  class G.  O.  No.  27,  Sup.  No.  4 

Electricians  and  helpers  engaged  in  work  on  interlocking  and  signaling  systems, 

rates  of  pay,  question  and  decision G.  O.  No.  27,  Sup.  No.  4,  Interp.  2 

Elevated  and  tunnel  common  labor,  rates  for  overtime  (Art.  VIII). . .     G.  O.  No.  27, 

Sup.  No.  8,  Interp.  1 
Employee's  claim,  rate  of  pay  for  temporary  work  as  city  ticket  agent. .     G.  O.  No.  27. 

Interp.  7 
Employee  doing  special  service  as  station  agent,  rate  of  pay,  question  and  de- 
cision      Gr.  O.  No.  27,  Interp.  <i 

Employee's  and  employer's  claim,  back  pay  as  in  G.  O.  No.  27,  decision, 

G.  O.  No.  27,  Interp.  4 
Employee's  and  employer's  claim,  increase  of  salary  as  in  G.  O.  No.  27,  deci- 
sion      G.  O.  No.  27,  Interp.  b 

Employee  working  temporarily  as  city  ticket  agent,  rate  of  pay,  question  and 

decision G-  O.  No.  27,  Interp.  7 

Employees  of  American  Railway  Express  Co.,  tribunal  named  for  adjustment 

of  disputes  between  said  company  and  employees G.  O.  No.  54 

Employees,    attorneys,    officials   of   United    States    Railroad    Administration 

forbidden  political  actiAdty G,  O.  No.  48 

(Substituted  for  G.  0.  No.  42  and  Sup.  No.  1  thereto) 

Employees,  classification  of — Hours,  wages,  conditions  of  employment 

G.  O.  No.  27,  Sup.  No.  4 

Employees,  compensation  for  helpers,  basic  trades,  shop  crafts G.  O.  No.  27, 

Sup.  No.  4,  Amendment  No.  1 
Employees,  compensation  rates,  for  certain  classes  of  employees  (specified, 
in  the  respective  shop  crafts)  who  have  heretofore  received  a  rate  in  excess  of 
the  established  minimum  rate,  and  rates  of  compensation  for  classes  of  em- 
ployees named  in  sections  5  and  6  of  this  order,  which  were  not  included  in 

Supplement  No.  4 G.  O.  No.  27,  Sup.  No.  4,  Addendum  No.  2 

Employees,  courtesy  and  consideration  to  public G.  0.  No.  40 

Employees'  debts,  if  rules  become  necessary  to  require  employees  to  provide 
for  their  just  debts,  they  will  be  issued  hereafter,  garnishment,  attachment  or 

like  process  forbidden G.  O.  No.  43 

Employees  engaged  in  work  on  interlocking  and  signaling  systems,  rates  of  pay, 

question  and  decision G.  O.  No.  27,  Sup.  No.  4,  Interp.  No.  2 

Employees,  hoiu-s,  wages,  conditions  of  employment G.  0.  No.  27,  Sup.  No.  4 

Employees,  maintenance  of  way  department,  pay  rates  and  rules  for  overtime 

and  working  conditions G.  O.  No.  27,  Sup.  No.  8 

Employees  in  military  service,  preference  in  reemployment  given  to  soldiers 

and  sailors,  when  mustered  out  of  the  ser\dce,  rules  governing G.  O.  No.  51 

Employees,  not  having  seniority  rights,  who  are  in  military  service,  rules 

governing  reemployment G.  0.  No.  51 

Employees  and  officers,  American  Railway  Express  Co.,  matters  presented  by, 
investigated  bv  Board  of  Railroad  Wages  and  Working  Conditions. .     G.  O.  No.  27, 

Sup.  No.  9 
Employees,  officers,  and  attorneys  in  railroad  service  holding  political  offices, 

rules  for  exception  to G.  O.  No.  48 

(Substituted  for  G.  O.  No.  42  and  Sup.  No.  1  thereto) 
Employees  paid  dailv,  hourly  rate  (superseding  G.  O.  No.  27  and  in  lieu 

thereof) '. G.  O.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  13 


414 

Eini)loyees  paid  daily,  weekly,  monthly,  overtime  work G.  0.  No.  27, 

Sup.  No.  7,  Interp.  No.  1 
G.  0.  No.  27,  Sup.  No.  8,  Interp.  No.  1 
Employees  paid  monthly,  hourly  rate  (superseding  G.  O,  No.  27  and  in  lieu 

thereof) G.  0.  No.  27,  Sup.  No.  IQ 

G.  0.  No.  27,  Sup.  No.  13 
Employees  paid  on  a  tonnage  or  piece  work  basis,  earning  in  excess  of  43  cents 

per  hour;  rates  of  pay G.  0.  No.  27,  Sup.  No.  7,  Interp.  No.  2 

Employees  paid  weekly,  hourly  rate  (superseding  G.  O.  No.  27  and  in  lieu 

thereof) G.  0.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  13 
Employees  in  passenger  train  crew,   designated  as  passenger  brakemen  or 

flagmen  (Art.  VI,  G.  0.  No.  27) G.  0.  No.  27,  Sup.  No.  12 

Employees'  pay. Interp.  3  to  G.  O.  No.  27,  and  to  Sup.  No.  4, 

Addenda  Nos.  1  and  2,  Interp.  No.  1,  and  Amendment  No.  1  thereto 

Employees'  pav G.  O.  No.  27 

G.  0.  No.  27,  Sup.  No.  1 

Employees'  pav  and  hom\s G.  0.  No.  27 

G.  0.  No.  27,  Sup.  No.  2 

Employees'  pay  rates Interp.  1  to  G.  O.  No.  27,  Sup.  No.  4 

Addendum  No.  2,  G.  0.  No.  27,  Sup.  No.  4 
Employees,  pay  rates  and  rules  for  overtime  and  working  conditions,  clerical 

forces  and  certain  other  employees G.  0.  No.  27,  Sup.  No.  7 

Employees,  rates  of  pay,  rules  for  overtime  and  working  conditions  (superseding 

G.  O.  No.  27  and  in  lieu  thereof) G.  O.  No.  27,  Sup.  No.  10 

G.  0.  No.  27,  Sup.  No.  11 
G.  O.  No.  27,  Sup.  No.  13 

Employees,  safety  of G-  0.  No.    8 

Employees,  safety  upon  railroads  (see  also  G.  O.  No.  8) G.  0.  No.  46 

Employees;  service ;  duties G.  O.  No.    1 

Employees  of  steamship  lines,  status  of G.  0.  No.  19 

Employees,   United   Brotherhood   of  Maintenance   of  Way,   agreement  with 

regional  directors G.  O.  No.  53 

Employees'  wages G.  O.  No.  27 

G.  O.  No.  27,  Interp.  2 

Employees'  wages  and  hours G.  0.  No.  27 

G.  0.  No.  27,  Interp.  1 

G.  O.  No.  27,  Sup.  No.  3 

Employees — Wages,  hom-s,  conditions  of  employment.  ...     G.  O.  No.  27,  Sup.  No.  5 

Employees  working  10  hours  per  day,  rates  for  overtime  (Art.  II) G.  0.  No.  27, 

Sup.  No.  7,  Interp.  No.  1 
G.  O.  No.  27,  Sup.  No.  8,  Interp.  No.  1 
Employer's  and  employee's  claim,   back  pay  as  in  General  Order  No.  27, 

decision -  -  -     G.  O.  No.  27,  Interp.  4 

Employer's  and  employee's  claim,  increase  of  salary  as  in  General  Order  No.  27, 

decision G.  O.  No.  27,  Interp.  5 

Employment  of  attorneys,  expenditures  for G.  O.  No.  6 

Employment  conditions,  hours,  wages G.  0.  No.  27,  Sup.  No.  5 

Employment,  regulations  of G.  0.  No.  13 

Employment,  regulations  of  and  basis  of  compensation,  agreement  providing 

for G.  O.  No.  53 

Engineers,  pay  of G.  0.  No.  27,  Interp.  1 

Engineers,  pay,  rules G.  O.  No.  27,  Sup.  No.  7 


415 

Entering  of  employees,  or  changing  classification  (Art.  Ill)  (superseding  G.  O. 

No.  27  and  in  lieu  thereof) G.  0.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  13 

Equipment,  construction  and  acquisition  of  contracts  for G.  O.  No.  35 

Equipment,  construction  and  acquisition  of,  for  New  York  canal  section    G.  O.  No.  22 

Equipment  costing  more  than  $1,000 G.  0.  No.  12,  Sup.  No.  1 

E((uipment,  hire  of G.  0.  No.  31 

Equipment  of  one  carrier  destroyed  on  line  of  another  carrier  under  Federal 

control G.  0.  No.  47 

Equity,  suits  in,  to  be  brought  directly  against  Director  General G.  0.  No.  50 

Exceptions,  rate  of  pay,  telegraph  agents G.  0.  No.  27,  Sup.  No.  13 

Exceptions,     rules,     municipal     offices     held     by     employees     in     railroad 

service G.  O.  No.  48 

(Substituted  for  G.  0.  No.  42  and  Sup.  No.  1  thereto) 

Excess  baggage  revenues,  apportionment  of G.  0.  No.  32 

Exchange  of  advertising  for  free  railroad  transportation  ...     G.  0.  No.  6,  Suj).  No.  1 

G.  O.  No.  6,  Sup.  No.  2 

Executive  authority G.  0.  No.  16 

Expenditures,  operating  revenues G.  O.  No.  6 

Expense,  allowance  (sees.  4  and  5,  Art.  IV,  Sup.  No.  4  to  G.  O.  No.  27)  Arti- 
cle IV Interp.  3  to  G.  O.  No.  27 

and  to  Sup.  No.  4,  Addenda  Nos.  1  and  2, 
Interp.  No.  1,  and  Amendment  No.  1  thereto 

Expenses G.  O.  No.  6 

Expenses,  clerical  and  office G.  O.  No.  29 

Expenses,  clerical  and  office,  cases  presented  to  Railway  Board  of  Adjustment 

No.  3 G.  O.  No53 

Expenses,  operating,  premiums  on  fidelity  bonds  to  be  charged  to G.  O.  No.  36 

Expenses,  operating,  salaries  chargeable  to G.  O.  No.  9 

Expenses,  transactions  invohdng  water  lines  under  Federal  control. . .  G.  O.  No.  52 
Explosives   or   other    dangerous    articles    unclaimed    or   refused   shipments 

of G.  O.  No.  34-A 

(Substituted  for  G.  O.  No.  34) 
Express  Company,  American  Railway,  and  its  employees,  tribunal  named  for 

adjustment  of  disputes G.  0.  No.  54 

Express  operating  revenues,  increase  of G.  0.  No.  56 

Express  rates  and  charges,  classifications,  regulations  and  practices,  legends 

for  title  page  of  schedules  (sec.  8) G.  O.  No.  56 

Extra  eer-\Tices,    compensation   for   (superseding  G.  O.   No.   27  and  in  lieu 

thereof) G.  0.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  13 

Facilities,  rules  and  regulations  governing,  accounting G.  0.  No.  31 

Failure  to  make  collection  of  an  undercharge G.  O.  No.  55 

Fares,  increase G.  O.  No.  28 

Federal  auditor,  8er\T.ce  of  (see  accounting  officer,  chief) G.  O.  No.  44 

Federal  books,  carriers  by  water G.  O.  No.  52 

'  Federal  control  act,  carriers  under  Federal  control,  subject  to  all  laws  and 

liabilities  as  common  carriers G.  0.  No.  50 

Federal  control,  sale  of  liquors  and  intoxicants G.  0.  No.  39 

Federal  treasurers G.  O.  No.  37 

G.  O.  No.  37-A 
Federal  Treasiu-ers'  reports G.  O.  No.  23,  Sup.  No.  1 


416 

Female  employees,  pay  (Art.  VIII)  (Superseding  G.  O.  Xo.  27  and  in  lieu 

thereof) " G.  O.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  13 

Fidelity  bonds,  premiums  on G.  0.  No.  36 

Fiftli  paragraph  General  Order  No.  12,  amendment  to,  work  involving  charges 

to  capital  account  not  in  excess  of  $25,000 G.  O.  No.  12,  Sup.  No.  1 

Filing  of  overtime  rates     G.  O.  No.  27,  Sup.  No.  8,  Interp.  No.  1 

Fine  and  imprisonment,  sliipping  rules G.  O.  No.  38 

Fire  insurance  policies G.  0.  No.  24 

Firemen G.  0.  No.  27,  Sup.  No.  7 

Firemen,  pay  of G.    0.   No.   27,   Interp.    1 

Flagmen  or  brakemen,  passenger  (Art.  YI,  G.  O.  No.  27) . . .     G.  0.  No.  27,  Sup.  No.  12 

Plagmen,  pay  of G.  O.  No.  27,  Interp.  2 

Flangers - .  -     G.  O.  No.  27,  Sup.  No.  4,  Addendum  No.  2 

Flue  work  (Sup.  No.  4,  Art.  I,  see.  2  and  2-B),  Article  VII. . . .     Interp.  3  to  G.  0. 

No.  27  and  to  Sup.  No.  4,  Addenda  Nos.  1  and  2, 
Interp.  No.  1,  and  Amendment  No.  1  thereto 

Foremen,  pay  of G.  O.  No.  27,  Interp.  1 

Foremen,  pay,  rules G.  O.  No.  27,  Sup.  No.  8 

Form  prescribed  by  D.  C.  E.  Cir.  No.  1  and  Sup.  No.  1,  requisition  for  authority 

to  begin  work  involving  charges  to  capital  account G.  O.  No.  12,  Sup.  No.  1 

FormT-5 G.  0.  No.  23 

Form  T-5,  weekly  cash  report G.  0.  No.  23,  Sup.  No.  1 

Formal  claims  for  overcharge G.  O.  No.  55 

Free  Passes G.  0.  No.  6 

G.  0.  No.  6,  Sup.  No.  1 
G.  O.  No.  6,  Sup.  No.  2 

Free  time G.  0.  No.  7 

Free  time,  demurrage G.  0.  No.  3 

Free  transportation,  exchange  of  advertising  for G.  0.  No.  6 

G.  O.  No.  6,  Sup.  No.  1 
G.  O.  No.  6,  Sup.  No.  2 

Freight,  astray G.  O.  No.  41 

Freight,  carload  and  L.  C.  L.  nonperishable,  refused  or  unclaimed  at  destina- 
tion bv  consignees,  after  GO  days  to  l)e  sold  at  public  auction  by  carriera 

'g.  O.  No.  34-A 
(Substituted  for  G.  O.  No.  34) 
Freight  cars,   bills  for  repairs  by  one  carrier  against  anotlier  carrier  under 

Federal  control G.  O.  No.  47 

Freight  charges G.  O.  No.  25 

Freight  Claim  Association  rules G.  O.  No.  41 

Freight  claims  for  loss  and  damage G.  O.  No.  41 

Freight  and  damage  claims  (jurisdiction  of  court) G.  0.  No.  26 

Freight  destroyed  or  confiscated  in  transit,  charges  for G.  0.  No.  55 

Freight  and  passenger  rates G.  O.  No.  28 

G.  O.  No.  28,  Sup. 

Freight  and  passenger  rates,  increase G.  O.  No.  28 

G.  O.  No.  28,  Sup. 
Freight,  perishable  and  nonperishable.  rules  governing  disposition  of  refused 

or  unclaimed  freight G.  O.  No.  34 

Freight  revenues,  bases  for  apjjortioning  interroad  freight  revenues.  .  .     G.  0.  No.  21 

Freight  train  steel-car  builders  and  rejiairers G.  O.  No.  27, 

Sup.  No.  4,  Addendum  No.  2 


417 

Garnishment,  no  money  or  property  under  Federal  control  shall  be  subject 
to  garnishment,  attachment,  or  like  process.  If  rules  become  necessary 
to  require  employees  to  pro\'ide  for  their  just  debts,  they  will  be  issued 

•    hereafter G.  0.  No.  43 

General  Order  No.  7,  amended G.  O.  No.  7,  Sup.  No.  1 

Government  transportation  charges G.  O.  No.  25-A 

Grain  doors,  cars  for  grain  loading G.  O.  No.  57 

Grain  loading G.  O.  No.  57 

Grievances G.  0.  No.  29 

G.  O.  No.  27,  Sup.  No.  8 

Grievances  and  discipline G.  O.  No.  27,  Sup.  No.  7 

Grievances  and  discipline  (Art.  ^'1I)  (superseding  G.  O.  No.  27,  and  in  lieu 

thereof) G.  O.  No.  27,  Sup.  No.  10 

G.  0.  No.  27,  Sup.  No.  11 
G.  O.  No.  27,  Sup.  No.  13 
Grievances,  personal,  disputes  between  American  Railway  Express  Co.  and 

its  employees G.  0.  No.  54 

Grievances,  personal.  Railway  Board  of  Adjustment  No.  3 G.  O.  No.  53 

Half  size  report  forms G.  0.  No.  49 

Hammersmiths G.  O.  No.  27,  Sup.  No.  4,  Addendum  No.  2 

Heading  of  specimen  check  to  be  changed G.  O.  No.  37-A 

Hearing,  fair  and  impartial,  discipline  and  grievances  (Art.  VII)  (superseding 

G.  0.  No.  27.  and  in  lieu  thereof) G.  O.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  11 
G.  O.  No.  27,  Sup.  No.  13 

Helpers G.  0.  No.  27,  Sup.  No.    4 

G.  0.  No.  27,  Sup.  No.    S 

Helpers  (Art.  XIII) Interp.  3  to  G.  0.  No.  27  and  to  Sup.  No.  4,  Addenda 

Nos.  1  and  2,  Interp.  No.  1,  and  Amendment  No.  1  thereto 

Helpers  of  America G.  O.  No.  29 

Helpers  in  basic  trades,  compensation. .     G.  O.  No.  27,  Sup.  No.  4.  Amendment  No.  1 
Helpers  engaged  in  work  on  interlocking  and  signaling  systems,  rates  of  pay, 

question  and  decision G.  O.  No.  27,  Sup.  No.  4,  Interp.  No.  2 

Helpers,  pay  of G.  O.  No.  27,  Interp.  1 

Hire  of  equipment G.  O.  No.  31 

Holden,  Hale,  agreement  between  regional  directors  and  labor  unions. .     G.  O.  No.  53 

Hourly  basis  pay  for  coach  cleaners G.  O.  No.  27,  Sup.  No.  4, 

Addendum  No.  1 
Hourly  rate  for  positions  held  by  monthly  paid  employees  (superaeding  G.  O. 

No.  27.  and  in  lieu  thereof) G.  O.  No.  27,  Sup,  No.  10 

G.  O.  No.  27,  Sup.  No.  13 
Hourly  rate  for  positions  held  by  weekly  paid  employees  (superseding  G.  0. 

No.  27,  and  in  lieu  thereof) G.  O.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  13 

Hourly  rates,  overtime  (Art.  Ill) G.  O.  No.  27,  Sup.  No.  7,  Interp.  No.  1 

G.  O.  No.  27,  Sup.  No.  8,  Interp.  No.  1 

Hours,  conductors,  porters,  maids G.  0.  No.  27 

G.  O.  No.  27,  Sup.  No.  2 

Hours  of  employment G.  O.  No.  8 

Hours  of  service.  Article  Y  (superseding  G.  O.  No.  27,  and  in  Ueu  thereof) 

G.  O.  No.  27,  Sup.  No.  11 
G.  O.  No.  27,  Sup.  No.  13 
Hours  of  serv-ice,  safetv  of  employees  and  travelers  (see  also  G.  O.  No.  8) 

G.  O.  No.  46 
105889°— 19 27 


418 

Hours  and  wages ^t.  0.  No.  27 

G.  0.  No.  29 

G.  O.  No.  27,  Interp.  1 

G.  O.  No.  27,  Sup.  No.  3 

Hours,  wages,  and  conditions  of  employment G.  O.  No.  27,  Sup.  No.  4 

Hours,  wages,  and  other  conditions  of  employment G.  O.  No.  27,  Sup.  No.  5 

Hours  and  wages,  considered  liy  Board  of  Railroad  Wages  and  Working  Con- 
ditions  - ;-, G.  O.No.53 

House  and  bridge  carpenters,  rates  of  pay,  question  and  decision G.  0.  No.  27, 

Sup.  No.  8,  Interp.  No.  2 

Income,  operating,  water  lines  under  Federal  control G.  0.  No.  52 

Increase  of  express  operating  revenues G.  0.  No.  56 

Increase  not  given  to  employees  paid  on  tonnage  or  piecework  basis,  earning 

in  excess  of  43  cents  per  hour G.  O.  No.  27,  Sup.  No.  7,  Interp.  No.  2 

Increase  of  salary  as  in  General  Order  No.  27,  employee's  and  employer's  claim, 

decision G.  O.  No.  27,  Interp.  5 

Increased  freight  and  passenger  rates G.  O.  No.  28 

G.  0.  No.  28,  Sup. 
Increases,  general  application  of  increases  in  Supplement  No.  4  to  General 
Order  No.  27  (Art.  II)...     Interp. 3  to  G.  O.  No.  27,  and  to  Sup.  No.  4,  Addenda 
Nos.  1  and  2,  Interp.  No.  1,  and  Amendment  No.  1  thereto 

Increases,  pieceworkers'  (Art  I) Interp.  3  to  G.  O.  No.  27,  and  to  Sup.  No.  4, 

Addenda  Nos.  1  and  2,  Interp.  No.  1,  and  Amendment  No.  1  thereto 
Industry  tracks;  contracts;  discontinuance  of  use  of  tracks. .     G.  O.  No.  15,  Sup.  No.  1 

Industry  tracks,  requirements G.  0.  No.  15 

Inequalities;  rates  of  pay;  overtime  (Art.  VIII) G.  O.  No.  27,  Sup.  No.  7, 

Interp.  No.  1 
G.  O.  No.  27,  Sup.  No.  8,  Interp.  No.  1 
Inequalities  as  to  wages  and  working  conditions;  American  Railway  Express 

Co  ;  investigated  bv  Board  of  Railroad  Wages  and  Working  Conditions 

G.  O.  No.27,  Sup.  No.  9 
Inequities  resulting  from  application  of  section  2,  Article  III  of  Supplement  4 
to  General  Order  No.  27  removed  by  amendment;  compensation  for  helpers  in 

the  basic  trades;  shop  crafts G.  O.  No.  27,  Sup.  No.  4,  Amendment  No.  1 

Injuries,  suits  account G.  0.  No.  26 

Injury,  claim  for;  suits  to  be  brought  directly  against  Director  General . .     G.  0.  No.  50 

Inspection  of  cars  for  bulk  grain  loading G.  O.  No.  57 

Inspectors G.  O.  No.  27,  Sup.  No.  4,  Addendum  No.  2 

Insurance  policies G.  O.  No.  24 

Interline  baggage  collections,  excess;  standard  form  for  reports G.  0.  No.  49 

Interline  passenger  accounts G.  0.  No.  32 

Interline  ticket  sales,  standard  forms  for  reports G.  O.  No.  49 

Interline  waybilling  and  standard  forms G.  O.  No.  II 

International  Association  of  Machinists G.  O.  No.  29 

International  Brotherhood  of  Blacksmiths  and  Helpers G.  O.  No.  29 

International  Brotherhood  of  Boilermakers G.  O.  No.  29 

International  Brotherhood  of  Electrical  Workers G.  0.  No.  29 

Interpretation  of  wage  order;  differences  of  opinion  necessitating;  application 
made  by  regional  director,  chief  executives,  chairman  Railway  Boards  of 

Adjustment,  or  director  Division  of  Labor. .  .• G.  O.  No.  27,  Sup.  No.  6-A 

Interpretations,  requests  for,  to  continue  to  be  submitted  to  the  Director  of 
Labor  and  after  being  immediately  recorded,  to  be  transmitted  to  Board  of 

Railroad  Wages  and  Working  Conditions G.  O.  No.  27,  Sup.  No.  6 

Inter-road  bills  and  accounts G.  O.  No.  30 


419 

Inter-road  freight  claims  for  loss  and  damage G.  O.  Xo.  41 

Inter-road  fi-eight  revenues,  bases  for  apportioning G.  0.  Xo.  21 

Interstate  Commerce  Commission,  rates G.  O.  Xo.    1 

Interstate  and  intrastate  traffic G.  O.  Xo.  7,  Sup.  Xo.  1 

Intrastate  traffic  rates,  American  Railway  Express  Co.  (sec.  4) G.  0.  Xo.  56 

Intoxicants  and  liquors  of  every  character,  control  of  sale  of G.  O.  X'o.  39 

Inventory,  materials  and  supplies G.  O.  Xo.  10 

Iron-ship  builders G.  O.  No.  29 

Joint  facilities,  bills  for G.  O.  Xo.  20 

G.  0.  No.  32 
Labor  Division,  dii-ector  of;  application  for  interpretation  of  wage  order.     G.  O.  No.  27, 

Sup.  No.  6-A 
Labor  Division  of  United  States  Railroad  Administration  to  adjust  certain  dis- 
putes between  American  Railway  Express  Co.  and  its  employees. . .     G.  0.  Xo.  54 

Labor  unions,  agreement  with  regional  directors G.  O.  Xo.  53 

Lane,  Franklin  K.,  Railroad  Wage  Commission G.  O.  Xo.    5 

Law  actions;  suits  to  be  brought  directly  against  Director  General.  ...     G.  O.  Xo.  50 

Laws  and  liabilities  to  which  earners  are  subject G.  O.  X'o.  18 

G.  0.  No.  26 

Leakage  of  giain  in  transit G.  O.  No.  57 

Legends  for  title-page  of  schedules;  express  rates  and  charges  (sec.  8) . .     G.  O.  Xo.  56 

Legislation,  expenditures  for G.  0.  No.    6 

Less-than-carload  and  carload  nonperishable  freight,  refused  or  unclaimed  at 
destination  by  consignees,  after  60  days  to  be  sold  at  public  auction  by 

carriers G.  0.  No.  34-A 

(Substituted  for  G.  O.  No.  34) 
Levermen ;  rates  of  pay,  rules  for  overtime,  and  working  conditions  (superseding 

G.  O.  Xo.  27  and  in  lieu  thereof) G.  O.  Xo.  27,  Sup.  Xo.  10 

G.  0.  Xo.  27,  Sup.  Xo.  13 

Liabilities  and  laws  to  which  carriers  are  subject G.  0.  No.  18 

G.  O.  Xo.  26 
Liquors  and  intoxicants  in  dining  cars,  restaurants,  and  railroad  stations  under 

Federal  control G.  O.  Xo.  39 

Loading  of  grain G.  O.  Xo.  57 

Local  excess  baggage  collections;  standard  forms  for  reports G.  O.  Xo.  49 

Local  ticket  sales;  standard  forms  for  reports G.  O.  Xo.  49 

Local  treasurers G.  O.  Xo.  37 

Local  treasurers  appointed  in  lieu  of  Federal  managers G.  0.  Xo.  37-A 

Locomotive  boiler  washers,  pay,  rules G.  O.  No.  27,  Sup.  No.  7 

Locomotive  crane  operators  (sec.  6,  Art.  I,  Sup.  Xo.  4  to  G.  O.  No.  27),  Article 

XI Interp.  3  to  G.  0.  No.  27  and  to  Sup.  No.  4,  Addenda 

Nos.  1  and  2,  Interp.  No.  1,  and  Amendment  Xo.  1  thereto 
Locomotives,  bills  for  repaii-s  by  one  carrier  against  another  carrier  under  Federal 

control G.  O.  No.  47 

Locomotives,  utilization G.  0.  No.    1 

Loss  of  grain;  recording  of  leakage;  disposition  of  claims G.  0.  No.  57 

Lumber;  doors  of  cars  for  grain  loading G.  O.  No.  57 

McAdoo,  Director  General,  admonishes  employees;  courtesy  must  be  shown 

public G.  0.  No.  40 

McChord,  Charles  C,  Railroad  Wage  Commission G.  0.  No.    5 

Machinist  apprentices G.  O.  No.  27,  Sup.  No.  4 

Machinist  helpers G.  O.  No.  27,  Sup.  No.  4 

Machinists G.  O.  No.  27,  Sup.  No.  4 


420 

Machiniste  and  helpers  engaged  in  work  on  interlocking  and  signaling  eyptemp; 

rates  of  pay;  question  and  decision G.  O.  No.  27,  Sup.  No.  4,  Tnterp.  No.  2 

Mahor,  N.  D.,  agreement  between  regional  directors  and  labor  unions. .     G.  O.  No.  53 

Maids,  hours  and  pay  of G.  O.  No.  27,  Sup.  No.  2 

Mail,  United  States,  carrying  of  (Art.  VI)  (Superseding  G.  O.  No.  27  and  in 

lieu  thereof) .' G-  0.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  13 
Maintenance  of  Way  Department  employees,  rates  of  pay  and  rules  for  over- 
time and  working  conditions G.  O.  No.  27,  Sup.  No.  8 

Mallory  Steamship  Co.,  control  of G.  0.  No.  19 

Markham,  C.  H.,  agreement  between  regional  directors  and  labor  unions    G.  O.  No.  53 

Markham,  C.  H.,  regional  director G.  O.  No.  4 

Material  carriers  and  helpers,  Article  X. .     Interp.  3  to  G.  O.  No.  27  and  to  Sup.  No.  4, 
Addenda  Nos.  1  and  2,  Interp.  No.  1,  and  Amendment  No.  1  thereto 

^faterials,  inventory G.  O.  No.  10 

Materials,  for  repairs,  furnished  one  carrier  by  another  carrier  imder  Federal 

control G.  O.  No.  47 

[Materials  and  supplies,  accoimts  of,  carriers  by  water G.  O.  No.  52 

Maximum  monthly  wage  (Art.  II)  (Superseding  G.  O.  No.  27  and  in  lieu 

thereof) G.  O.  No.  27,  Sup.  No.  11 

Meal  period  (Art.  VII) G.  O.  No.  27,  Sup.  No.  7,  Interp.  No.  1 

G.  O.  No.  27,  Sup.  No.  8,  Interp.  No.  1 

Mechanics G.  O.  No.  27,  Sup.  No.  8 

Mechaneis  and  helpei-s  engaged  in  work  on  interlocking  and  signalmg  systems; 

rates  of  pay;  question  and  decision G.  O.  No.  27,  Sup.  No.  4,  Interp.  Xo.  2 

Members  of  draft  boards,  positions  not  construed  as  political  offices G.  O.  Xo.  48 

(Substituted  for  G.  0.  No.  42  and  Sup.  No.  1  thereto) 
M<>rchandi6e  rates  from  points  m  the  United  States  to  points  in  Canada,  Amer- 
ican Railway  Express  Co.  (Sec.  I) G.  O.  Xo.  56 

Merchants  &  Miners  Transportation  Co.,  control  of G.  O.  Xo.  19 

Messengers,  pay,  rules G.  O.  No.  27,  Sup.  Xo.  7 

Method  of  obtaining  hoiu-ly  rate  (Superseding  G.  O.  No.  27  and  in  lieu  thereof) 

G.  O.  No.  27,  Sup.  Xo.  10 
G.  O.  No.  27,  Stip.  Xo.  13 

Mileage,  milk  and  cream,  American  Railway  Express  Co.  (Sec.  Ill) G.  O.  Xo.  56 

Milk  and  cream  mOeage,  American  Railway  Express  Co.  (Sec.  III)..     G.  O.  No.  56 

Millwrights G.  O.  No.  27,  Sup.  No.  4,  Addendum  No.  2 

Minimiim  rate  (Art.  in  (Superseding  G.  O.  Xo.  27  and  in  lieu  thereof)     G.  O.  No. 27, 

Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  13 

Mississippi  and  Warriors  Waterways,  appointment  of  Federal  manager  of    G.  O.  No.  35 

Mifiunderstandings,  officers  and  employees  to  adjust  controversies G.  O.  No.  53 

Molders - G.  O.  No.  27,  Sup.  No.  4 

Moldors  and  helpers;  cupola  tenders  (Sup.  No.  4,  Art.  I,  Sees.  7  and  7-B)  Article 

XIII .-..     Interp.  3toG.  O.  No.  27,  and  to  Stip.  No.  4,  Addenda 

Nos.  1  and  2,  Interp.  No.  1,  and  Amendment  No.  1  thereto 
Monthly  paid  employees,  hoiu-ly  rate  (Superseding  G.  O.  No.  27,  and  in  lieu 

*   thereof)  '. G.  O.  No.  27,  Stip.  No.  10 

G.  O.  No.  27,  Sup.  No.  13 

Monthly  statements;  interroad  freight  claims,  method  of  payment G.  O.  No.  41 

Monthly  wages G.  O.  No.  27,  Sup.  No.  2 

Mimicipal  offices  held  by  attorneys,  officers  and  employees  in  railroad  service, 

rules  regulating ^-  O- No.  48 

(Substituted  for  G.  O.  No.  42  and  Sup.  No.  1  thereto) 


421 

MuBicipaJitiee,  transportation  charges G.  O.  No.  25-A 

National  system  of  transportation O.  O.  No.  1 

Neglecting  railroad  duties  to  engage  in  politics;  not  permitted  by  railroad 

employees  holding  municipal  offices G.  O.  No.  48 

(Substituted  for  G.  O.  No.  42  and  Sup.  No.  1  thereto) 

New  books  of  account  to  be  opened,  carriers  by  water G.  O.  No.  52 

New  Jersey  and  New  York  Canals,  Federal  Manager  of G.  O.  No.  33 

Newspaper  advertising,  issuance  of  passes G.  O.  No.  6 

G.  O.  No.  6,  Sup.  No.  1 
G.  O.  No.  6,  Sup.  No.  2 

New  York  Canal  Section,  creation  of G.  O.  No.  22 

New  York  and  New  Jersey  Canals,  Federal  Manager  of G.  O.  No.  33 

New  York  State  Barge  Canal,  creation  of G.  O.  No.  22 

Nonperishable  freight  refused  or  unclaimed  at  destination  by  consignees,  after  60 

days  to  be  sold  at  public  auction  by  carriers G.  O.  No.  34-A 

(Substituted  for  G.  O.  No.  34) 

Notaries  public,  positions  of,  not  construed  as  ]X)litical  offices G.  O.  No.  48 

(Substituted  for  G.  O.  No.  42  and  Sup.  No.  1  thereto) 
Notice  given  railroad  companies  by  Government  of  the  making  or  ordering  of 
additions,  betterments,  road  extensions,  equipments,  etc.,  costing  more  than 

$1,000 G.  O.  No.  12,  Sup.  No.  1 

Office  boys,  pay,  rules G.  O.  No.  27,  Sup.  No.  7 

Officers,  agents,  and  employees  of  steamship  lines,  statue  of G.  O.  No.  19 

Officers,  attorneys,  and  employees  in  railroad  service ;  rxxles  regiUating  political 

activity G.  O.  No.  48 

(Substituted  for  G.  O.  No.  42  and  Sup.  No.  1  thereto) 
Officers  and  employees,  American  Railway  Express  Co.,  matters  presented  by, 
investigated  by  Board  of  Railroad  "Wages  and  Working  Conditions.     G.  O.  No.  27, 

Sup.  No.  9 
Officers  of  pubUc  libraries,  positions  not  construed  as  political  offices. .     G.  0.  No.  48 

(Substituted  for  G.  O.  No.  42  and  Sup.  No.  1) 
Officials,  attorneys,  employees  of  United  States  Railroad  Administration  for- 
bidden political  activity G.  O.  No.  48 

(Substituted  for  G.  O.  No.  42  and  Sup.  No.  1) 

Oilers G.  O.  No.  27,  Sup.  No.  7 

Operating  bills,  checking  of G.  O.  No.  20 

Operating  expenses,  premiums  on  fidelity  bonds  to  be  charged  to G.  O.  No.  36 

Operating  expenses,  salaries G.  O.  No.    9 

Operating  income,  water  lines  under  Federal  control G.  O.  No.  52 

Operating  officials,  suits  or  proceedings G.  O.  No.  50 

Operating  revenues,  expenditures G.  O.  No.    6 

Operating  revenues,  express,  increase  of G.  0.  No.  56 

Operation  of  new  industry  tracks G.  O.  Xo.  15 

Operators,   block;  rates  of  pay;  rules  for  overtime  and   working  conditions 

(superseding  G.  O.  No.  27  and  in  lieu  thereof) G.  O.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  13 
Order  of  Railroad  Telegraphers,  agreement  with  regional  directors.  ...     G.  O.  No.  53 

Order  of  Railway  Conductors G.  O.  No.  13 

Overcharges,  undercharges,  and  agency  relief  claims;  disposition  of. . .     G.  O.  No.  55 

Overtime:  coach  cleaners G.  O.  No.  27,  Sup.  No.  4,  Addendum  No.  1 

Overtime;  monthly,  weekly,  or  daily  paid  employees G.  O.  No.  27, 

Sup.  No.  7,  Interp.  No.  1 

G.  O.  No.  27,  Sup.  No.  8,  Interp.  No.  1 

Overtime  rules G.  O.  No.  27,  Sup.  No.  7 


422 

(  hertime  work,  Sundays  and  holidays  C Art.  V) G.  O.  No.  27, 

Sup.  No.  7,  Interp.  No.  1 
G.  O.  No.  27,  Sup.  No.  8,  Interp.  No.  1 
Overtime  and  working  conditions,  rates  of  pay  for  certain  employees  (supersed- 
ing G.  O.  No.  27  and  in  lieu  thereof) G.  O.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  11 
G.  O.  No.  27,  Sup.  No.  13 
0^•ertime  and  working  conditions,  rules  for  employees  of  Maintenance  of  Way 

Department,  pay  rates G.  O.  No.  42,  Sup.  No.  8 

Park  boards,  members  of,  positions  not  construed  as  political  offices.  . .     G.  O.  No.  48 

(Substituted  for  G.  O.  No.  42  and  Sup.  No.  1) 

Passenger  accounts,  interline G.  O.  No.  32 

Passenger  brakemen  or  flagmen  (-Vrt.  YI,  G.  O.  No.  27)..     G.  O.  No.  27,  Sup.  No.  12 
Passenger  cars,  bills  for  repairs  ])y  one  carrier  against  another  carrier  under 

Federal  control G.  O.  No.  47 

Passenger  and  freight  rates,  increase G.  O.  No.  28 

G.  O.  No.  28,  Sup. 
Passenger  train  crew  employees  designated  as  passenger,  brakemen,  or  flagmen 

{Art.  VI,  G.  O.  No.  27 ) . G.  O.  No.  27,  Sup.  No.  12 

Passes,  free G.  O.  No.  6 

G.  0.  No.  6,  Sup.  No.  1 
G.  O.  No.  6,  Sup.  No.  2 

Pay G.  O.  No.  27 

G.  0.  No.  27,  Interp.  1 

Pav  for  calls  (Art.  IV) G.  O.  No.  27,  Sup.  No.  7,  Interp.  No.  1 

G.  O.  No.  27,  Sup.  No.  8,  Interp.  No.  1 

Pay  for  composite  mechanics;  question  and  decision G.  O,  No.  27, 

Sup.  No.  4,  Interp.  No.  2 
Pay  for  employee  doing  temporary  work  as  city  ticket  agent;  question  and 

decision •.--..     G.  O.  No.  27,  Interp.  7 

Pay,  employees Interp.  3  to  G.  O.  No.  27  and  to  Sup.  No.  4, 

Addenda  Nas.  1  and    2,  Interp.  No.  1,  and  Amendment  No.  1  thereto 
Pay  for  female  employees  for  the  same  class  of  work  shall  be  the  same  as  that  of 
men  and  their  working  conditions  must  be  healthful  and  fitted  to  their  needs 

(Art.  VIII )  (superseding  G.  O.  No.  27  and  in  lieu  thereof) G.  O.  No.  27, 

Sup.  No.  10 

(r.  O.  No.  27,  Sup.  No.  13 

Pay,  rates  of,  hoiise  and  bridge  carpenters;  quesdon  and  decision....     G.  0.  No.  27, 

Sup.  No.  8,  Interp.  No.  2 

Pay  rates  and  rules  for  coach  cleaners G.  O.  No.  27,  Sup.  No.  4,  Addendum 

Pay  rates  of  employees  in  any  department  performing  the  classes  of  work  speci- 
fied in  Supplement  No.  4  to  General  Order  No.  27  and  Addendum  No.  2 

Interp.  No.  1  to  G.  O.  No.  27,  Sup.  No.  4 
G.  O.  No.  27,  Sup.  No.  4,  Addendum  No.  2 
Pay  rates,  rules  for  overtime  and  working   conditions  for  certain  employees 

(superseding  G.  O.  No.  27  and  in  lieu  thereof) G.  O.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  11 
G.  0.  No.  27,  Sup.  No.  13 
Pay  rates  and  rules  for  overtime  and  working  conditions;  clerical  forces  and 

certain  other  employees G.  O.  No.  27,  Sup.  No.  7 

Pay  rates  and  rules  for  overtime  and  working  conditions  for  employees  in 

maintenance  of  way  department G.  O.  No.  27,  Sup.  No.  8 


423 

Pav-roU  classification Interp.  1  to  G.  O.  No.  27,  Sup.  Xo.  4 

G.  O.  Xo.  27,  Sup.  Xo.  4,  Addendum  Xo.  2 

Pay  for  station  agent  doina;  special  son-ice;  question  and  decision G.  O.  No.  27, 

Interp.  7 

Payments  for  back  time G.  O.  No.  27,  Sup.  No.  4 

Payments,  duplicate  collection  of  freight  charges G.  0.  No.  55 

Perishable  freight,  rules  governing  disposition  of  refused  or  unclaimed  freight. . 

G.  O.  No.  34-A 
(Substituted  for  G.  O.  No.  34) 
Personal  grievances,  disputes  between  American  Railway  Express  Co.  and  its 

employees G.  O.  X^o.  54 

Pei-sonal  giievances,  Railway  Board  of  Adjustment  No.  3 G.O.  No.  53 

Pei-sonal  injuries,  suits  account G.  O.  No.  26 

Piecework  basis,  employees  earning  in  excess  of  43  cents  per  hour;  rates  of  pay; 

question  and  decision G.  0.  No.  27,  Sup.  No.  7,  Interp.  Xo.  2 

Pipe  fitters  and  helpers  engaged  in  work  on  interlocking  and  signaling  systems; 

rates  of  pay;  question  and  decision G.  O.  No.  27,  Sup.  Xo.  4,  Interp.  Xo.  2 

Pleadings  in  all  law  actions  for  cause  arising  since  Dec.  31,  1917,  to  be 
amended  by  substituting  Director  General  for  carrier  corporations.     G.  O.  Xo.  50 

Policies,  fire  insurance G.  O.  Xo.  24 

Policy  of  United  States  Railroad  Administration  to  forbid  political  acti\-ity 
to  all  officials,  employees,  or  attorneys;  they  must  demonstrate  to  American 
people  that  under  Federal  control  employees  can  not  be  made  a  part  of  any 
political  machine  nor  be  used  for  anv  organized  partisan  or  selfish  purpose. . 

G.  0.  No.  48 
(Substituted  for  G.  O.  Xo.  42  and  Sup.  Xo.  1  thereto) 
Political  activity  of  any  officer,  attorney,  or  employee  of  United  States  Rail- 
road Administration,  rules  regulating G.  O.  No.  48 

(Substituted  for  G.  O.  No.  42  and  Sup.  No.  1  thereto) 
Political  campaign,  conduct  of,  not  t>o  be  assumed  by  railroad  employees  hold- 
ing municipal  offices G .  O.  No.  48 

(Substituted  for  G.  O.  No.  42  and  Sup.  No.  1  thereto) 

Political  purposes,  expenditures  for G.  0.  No.  6 

Porters G.  O.  No.  27,  Sup.  No.  12 

Porters,  hours  of  pay  of G.  O.  No.  27,  Sup.  No.  2 

Ports,  utilization G.  O.  No.  1 

Positions  held  by  telegraphers,  telephone  operators  (except  switchboard  oper- 
ators), agent  telegraphers,  agent  telephoners,  towermen,  levermen,  tower 
and  train  directors,  block  operators,  and  staffmen;  rates  of  pay,  rules  for 
overtime,  and  working  conditions  (superseding  G.  O.   No.  27  and  in  lieu 

thereof) G.  O.  Xo.  27,  Sup.  Xo.  10 

G.  O.  Xo.  27,  Sup.  Xo.  13 
Practices  and  regulations,  classifications,  express  rates  and  charges;  legends 

for  title-page  of  schedules  (sec.  8) G.  0.  No.  56 

Premiums  on  fidelity  bonds G.  0.  Xo.  36 

Preser^-ation  of  rates  and  classification  (Art.  Ill)  (superseding  G.  O.  Xo.  27 

and  in  lieu  thereof) G.  0.  Xo.  27,  Sup.  Xo.  10 

G.  O.  Xo.  27,  Sup.  Xo.  11 
G.  0.  Xo.  27,  Sup.  Xo.  13 

Pi'esidents,  railroad,  status  of G.  O.  No.  16 

Proceeding  in  Admiraltv,  suits  to  be  brought  directly  against  Director  General. 

G.  O.  No.  50 


424 

Proceeds,  net,  from  auction  sales  of  iinelaimefl  freight,  paid  to  owner  on  proof 

of  interest G.  (>.  No.  .34-A 

(Substituted  for  G.  O.  No.  34) 
Proclamation:  President  appointed  William  (r.  McAdoo  Director  <ieneral  of 
Railroads;  systems  of  transportation  to  be  subject  to  orders  of  Interstate  Com- 
merce, but  orders  of  Director  General  to  have  paramount  authoritj-.     G.  O.  No.  -^0 
Promotion  and  seniority,  pay  rates  and  rules  for  oa ertime  and  working  condi- 
tions      G.  O.  No.  27,  Sup.  No.  7 

Promotion  and  seniority  rights G.  O.  No.  27,  Sup.  No.  8 

Property  transportation G.  O.  No.  33 

Public,  consideration  and  courtesy  must  be  shown  by  employees (t.  O.  No.  40 

Public  library  officials'  positions  not  construed  as  political  offices G.  O.  No.  48 

(Substituted  for  G.  O.  No.  42  and  Sup.  No.  1  thereto) 

Purchase  of  supplies G.  0.  No.  33 

Purchase  of  supplies  for  construction,  acquisition,   or  chartering  of  certain 

equipment G.  O.  No.  35 

Purchase  of  supplies.  New  York  Canal  Section G.  O.  No.  22 

Question  and  decision,  bridge  and  house  carpenters,  rates  of  pay 

G.  0.  No.  27,  Sup.  No.  8,  Interp.  No.  2 

Question  and  decision,  city  ticket  agent,  rate  of  pay  for  temporary  work 

G.  0.  No.  27,  Interp.  No.  7 
Question  and  decision,  rates  of  pay  for  mechanics  engaged  in  work  on  inter- 
locking and  signaling  systems G.  O.  No.  27,  Sup.  No.  4,  Interp.  No.  2 

Question  and  decision,  station  agent  doing  special  8er\-ice,  rate  of  pay 

G.  0.  No.  27,  Interp.  No.  6 
Railroad  employees  holding  municipal  offices,  not  to  neglect  railroad  duties  . . 

G.  0.  No.  48 
(Substituted  for  G.  0.  No.  42  and  Sup.  No.  1  thereto.) 
Railroad  officials,  attorneys,  and  employees,  rules  governing  policital  activity. . 

G.  0.  No.  48 
(Substituted  for  G.  0.  No.  42  and  Sup.  No.  1  thereto) 

Railroad  Wage  Commission G.  0.  No.  5 

Railroad   Wages  and   Working  Conditions  Board,   duties  and  authority  are 

extended. G.  O.  No.  27,  Sup.  No.  6 

Railroads,  contiol  of G.  0.  No.  1 

Railroads,  control  of;  accounting G.  O.  No.  2 

Railroads,  Eastern  Region G.  O.  No.  4 

Railroads,  region G.  0.  No.  4 

Railroads,  Southern  Region G.  O.  No.  4 

Railroads,  Western  Region G.  0.  No.  4 

Railway  Board  of  Adjustment  No.  1 G.  O.  No.  13 

G.  O.  No.  27 

Railway  Board  of  Adjustment  No.  2 G.  O.  No.  29 

Railway  Board  of  Adjustment  No.  3. G.  O.  No.  53 

Railway  Clerks,  Brotherhood  of;  agreement  with  regional  directors. ...  G.  O.  No.  53 

Rate,  compensation;  helpers  in  basic  trades;  shop  crafts G.  O.  No.  27, 

Sup.  No.  4,  Amendment  No.  1 
Rate  of  pay  for  employee  doing  temporary  work  as  city  ticket  agent,  question 

and  decision G.  O.  No.  27,  Interp.  7 

Rate  of  pay  for  station  agent  doing  special  service,  question  and  decision 

G.  O.  No.  27,  Interp.  6 
Rates  based  upon  years  of  experience  (Sup.  No.  4,  Art.  II,  Sees.  2,  2-A,  and 

2-B)  (Art.  Ill) Interp.  3  to  G.  O.  No.  27  and  to  Sup.  No.  4, 

Addenda  Nos.  1  and  2,  Interp.  No.  1,  and  Amendment  No.  1  thereto 


425 

Rates,  commodity;  interstate  and  intrastate,  American  Railway  Express  Co. 

'Sec.  II) G.  0.  No.  56 

Rates,  hourly,  overtime  (Art.  Ill) G.  0.  No.  27,  Sup.  No.  7,  Interp.  No.  1 

G.  O.  No.  27,  Sup.  No.  8,  Interp.  No.  1 

Rates,  increase G.  0.  No.  28 

G.  0.  No.  28,  Sup. 

Rates  on  intrastate  traflic,  American  Railway  Express  Co.  (Sec.  4) G.  0.  No.  56 

Rates,  merchandise,  from  points  in  United  States  to  points  in  Canada,  Ameri- 

c-an  Railway  Express  Co.  (Sec.  1) G.  O.  No.  56 

Rates  and  method  of  application,  relating  to  various  classes  of  workers 

G.  O.  No.  27,  Sup.  No.  4 

Rates,  observance G.  0.  No.  1 

Rates,  overtime  work G.  O.  No.  27,  Sup.  No.  7,  Interp.  No.  1 

G.  O.  No.  27,  Sup.  No.  8,  Interp.  No.  1 

Rates,  pay Interp.  1  to  G.  O.  No.  27,  Sup.  No.  4 

G.  0.  No.  27,  Sup.  No.  4,  Addendum  No.  2 

Rates  of  pay;  comfK)site  mechanics;  question  and  decision G.  O.  No.  27, 

Sup.  No.  4,  Interp.  No.  2 

Rates  of  pay;  house  and  bridge  carpenters;  question  and  decision G.  0.  No.  27, 

Sup.  No.  8,  Interp.  No.  2 
Rates  of  pay;  rules  for  overtime  and  working  conditions  of  certain  employees 

(superseding  G.  0.  No.  27  and  in  lieu  thereof) G.  0.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  11 
G.  0.  No.  27,  Sup.  Xo.  13 
Rates  of  pay  and  rules  for  overtime  and  working  conditions  for  all  employees 
in  the  Maintenance  of  Way  Department  (except  mechanics  and  helpers 
where  provided  for  in  Sup.  No.  4,  G.  0.  No.  27,  and  clerical  forces)  upon  rail- 
roads imder  Federal  control G.  0.  No.  27,  Sup.  Xo.  8 

Rates,  pay;  rules  for  working  conditions  for  clerical  forces  and  certain  other 

employees G.  0.  No.  27,  Sup.  Xo.  7 

Rates  and  rules  for  coach  cleaners G.  0.  No.  27,  Sup.  No.  4,  Addendum  No.  1 

Receipts,  cash,  since  and  including  Januaiy  1,  1918 G.  O.  No.  37-A 

Receipts  of  cash  since  and  including  January  1,  1918 G.  0.  No.  37 

Recei\dng  funds  for  political  purposes,  not  permitted  by  railroad  employees 

holding  municipal  offices G.  O.  No.  48 

(Substituted  for  G.  O.  No.  42  and  Sup.  No.  1  thereto) 
Re.commendations  by  Board  of  Railroad  Wages  and  Working  (''onditions  con- 
cerning American  Railway  Express  Co.,  to  be  submitted  to  Director  General. . 

G.  0.  No.  27,  Sup.  Xo.  9 

Recording  of  loss  of  grain  in  transit G.  O.  No.  57 

Red  Cross  transportation  charges G.  O.  No.  25-A 

ReemplojTuent,    railroad    employees  in   military   service,    preference  given 

soldiers  and  sailors  when  mustered  out  of  the  sei-vice G.  0.  No.  51 

Refused  or  unclaimed  shipments,  sold  at  auction  after  60  days  by  earners, 

notice  to  consignees G.  O.  No.  34-A 

(Substituted  for  G.  O.  No.  34) 

Regional  director,  application  for  interpretation  of  wage  order G.  0.  No.  27, 

Sup.  No.  6-A 

Regional  director,  eastern  railroads G.  O.  No.  4 

Regional  director,  southern  railroads G.  O.  No.  4 

Regional  director,  western  raih-oads G.  O.  No.  4 

Regional  directors,  agreements  with  labor  unions G.  0.  No.  53 

R^onal  directors  to  establish  uniform  rates  of  paj-  (Art.  AIII  i 

G.  O.  No.  27,  Sup.  Xo.  7,  Interp.  Xo.  1 


426 

Regional  directors  to  file  overtime  rates  with  Board  of  Railroad  Wages  and 

Working  Conditions  (Art.  VIII) G.  O.  No.  27,  Sup.  No.  8,  Interp.  No.  1 

Regions G.  0.  No.  4 

Regulations;  accounting G.  O.  No.  17 

Regulations  of  employment G.  O.  No.  13 

Regulations  of  employment  and  basis  of  compensation,  agreement  providing 

for : G.  O.  No.  53 

Regulations  governing  bills  for  repairs  by  one  can-ier  under  Federal  control 

against  another  carrier  under  Federal  control G.  0.  No.  47 

Regulations  governing  carriers  by  water G.  O.  No.  52 

Regulations  governing  dispositions  of  inter-road  freight  claims  for  loss  and 

damage G.  O.  No.  41 

Regulations  and  rules  governing  accounting  for  use  of  equipment  or  facilities. . 

G.  O.  No.  32 

Regulations  and  rules  governing  apportionment  of  revenues G.  O.  No.  32 

Rejection  of  cars  for  bulk  grain  loading G.  O.  No.  57 

Relief  claims,  agency;  overcharges  and  undercharges;  disposition  of. . .     G.  O.  No.  55 
Religious  and  eleemosynary  institutions,  officials  of;  their  positions  not  con- 
strued as  political  offices G.  0.  No.  48 

(Substituted  for  G.  0.  No.  42  and  Sup.  No.  1  thereto) 
Rentals;  transactions  involving  water  lines  under  Federal  control ....     G.  0.  No.  52 

Repairers,  car G.  O.  No.  27,  Sup.  No.  4,  Addendum  No.  2 

Repaii-s,  bills  by  one  carrier  against  another  carrier  under  Federal  control     G.  0.  No.  47 

Report,  weekly  cash G.  0.  No.  23 

G.  O.  No.  23,  Sup.  No.  1 

Reports,  Federal  treasurers G.  O.  No.  23,  Sup.  No.  1 

Reports  for  monthly  ticket  and  excess  baggage — standard  forms  for  printing 

and  ruling  of G.  0.  No.  49 

Requirements  and  pro\isions  in  respect  to  shipping G.  O.  No.  38 

Recijvusitions  for  authority  to  begin  work  involving  charges  to  capital  accoimt; 

form  prescribed  by  D.  C.  E.  Cir.  No.  1,  Sup.  No.  1 G.  O.  No.  12,  Sup.  No.  1 

Revenues,  apportionment  of G.  O.  No.  32 

Revenues,  operating;  expenditures  of G.  O.  No.  6 

Revenues,  operating;  increase  of  express  rates G.  O.  No.  56 

Revenues;  transactions  involving  water  lines  under  Federal  control. . .     G.  0.  No.  52 
Right  of  appeal  by  employees  or   representatives  (Article  VII)  (superseding 

G.  0.  No.  27  and  in  lieu  thereof) G.  O.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  11 
G.  O.  No.  27,  Sup.  No.  13 

Rivet  heaters  (Art.  VIII) Interp.  3 

to  G.  O.  No.  27  and  to  Sup.  No.  4,  Addenda  Nos.  1 
and  2,  Interp.  No.  1,  and  Amendment  No.  1  thereto 

Road  extensions  costing  more  than  $1,000 G.  0.  No.  12,  Sup.  No.l 

Rolling  stock;  utilization  G.  O.  No.  1 

Routers G.  O.  No.  27,  Sup.  No.  4,  Addendum  No.  2 

Routings;  through G.  0.  No.  1 

Rules;  carriers  by  water;  transactions  of;  accounting ^ . . .     G.  0.  No.  52 

Rules;  freight  claim  association G.  O.  No.  41 

Rules;  governing  disposition  of  refused  or  unclaimed  perishable  or  nonperish- 

able  freight G.  0.  No.  34-A 

(Substituted  for  G.  O.  No.  34) 
Rules  governing  inspection,  selection  and  coopering  or  rejec-tion  of  cars  for  bulk 
grain  loading,  the  recording  of  loss  of  grain  from  car  by  leakage  during  transit 
and  disposition  of  claims  for  loss  and  damage  of  grain G.  O.  No.  57 


427 

Rules  governing   reemployment   of   railroad    employees   in    military  ser\'ice; 

seniority  rights G.  0.  No.  51 

Rules  governing  shipments G.  O.  No.  38 

Rules  for  overtime  and  working  conditions  for  certain  employees  (superseding 

G.  O.  No.  27  and  in  lieu  thereof) G.  0.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  11 
G.  0.  No.  27,  Sup.  No.  13 
Rules  for  overtime  and  working  conditions;  clerical  forces  and  certain  other 

employees G.  0.  No.  27,  Sup.  No.  7 

Rules  for  overtime  and  working  conditions  of  employees  of  Maintenance  of 

Way  Department;  pay  rates G.  O.  No.  27,  Sup.  No.  8 

Rules  and  rates  of  pay  for  coach  cleaners. .     G.  0.  No.  27,  Sup.  No.  4,  Addendum  No.  1 

Rules  and  regidations;  accounting G.  O.  No.  17 

Rules,  regulations,  and  charges;  demurrage G.  O.  No.  3 

Rules  and  regulations  governing  accounting  for  use  of  equipment  or  facilities 

G.  0.  No.  31 

Rules  and  regulations  governing  apportionment  of  revenues G.  0.  No.  32 

Rules  or  regulations  to  require  employees  to  pay  theii-  just  debts  will  be  issued 

hereafter  if  necessary;  garnishment,  attachment  or  like  process G.  0.  No.  43 

Safety  Appliances  (see  also  G.  0.  No.  8) G.  0.  No.  46 

Safety  of  employees  and  travelere G.  O.  No.  8 

Safety  of  employees  and  travelers  upon  railroad  (see  also  G.  O.  No.  8).     G.  0.  No.  46 

Salaries G.  0.  No.  27,  Sup.  No.  1 

Salaries;  chargeable  to  operating  expenses G.  O.  No.  9 

Salaiy  increase  as  in  General  Order  No.  27;  employee's  and  employer's  claim; 

decision G.  O.  No.  27,  Interp.  5 

Sale  of  liquors  and  intoxicants  in  cars,  restaurants  and  railroad  stations  under 

Federal  control G.  O.  No.  39 

Sale  of  perishable  and  nonperishable  freight;  niles  governing G.  0.  No.  34-A 

(Substituted  for  G.  0.  No.  34) 

Sanders,  M.  J.,  appointment  of G.  O.  No.  35 

SaAing  daylight  (see  also  Daylight  saving) G.  O.  No.  14 

G.  0.  No.  45 

Scales ;  grain  loading G.  O.  No.  57 

Schedules  published  to  cover  express  rates  and  charges;  legends  for  title  page 

(Sec.  8) G.  O.  No.  56 

School  or  park  boards,  members  of;  positions  not  construed  as  political  offices 

G.  0.  No.  48 
(Substituted  for  G.  0.  No.  42  and  Sup.  No.  1) 

Selection  of  cars  for  bulk  grain  loading G.  0.  No.  57 

Seniority  rights;  railroad  employees  in  military  service;  preference  given  to 

soldiers  and  sailors  when  mustered  out  of  the  service;  Rules  governing    G.  O.  No.  51 
Seniority  rights  of  white  trainmen  (Art.  VI,  G.  0.  No.  27)     G.  0.  No.  27,  Sup.  No.  12 

Separate  books  of  accounts  to  be  opened;  carriers  by  water G.  0.  No.  52 

SerAdces,   extra;  compensation  for  (Superseding  G.   0.   No.   27  and  in  lieu 

thereof) G.  0.  No.  27,  Sup.  No.  10 

G.  0.  No.  27,  Sup.  No.  13 

Settlements;  overcharges,  undercharges,  and  agency  relief  claims G.  0.  No.  55 

Sheet-metal  workera G.  O.  No.  27,  Sup.  No.  4 

Shipments;  refused  or  unclaimed,  sold  at  auction  after  60  days  by  carriers, 

notice  to  consignees G.  O.  No.    34-A 

(Substituted  for  G.  O.  No.  34) 

Shipments,  requirements  and  provisions  in  respect  to G.  O.  No.  38 

Shippers ;  grain  loading G .  O.  No.  57 


428 

Shi})piug  weights  J  grain  loading G.  0.  No.  57 

Shop  crafts G.  O.  No.  27.  Sup.  No.  4,  Addendum  No.  2 

Shop  crafts;  compensation  for  helpers  in  the  basic  trades G.  O.  No.  27, 

Sup.  No.  4,  Amendment  No.  1 

Short  hauling G.  0.  No.    1 

Sidings;  requirements G.  O.  No.  15 

Simplified  bases  for  apportioning  interroad  freight  revenues G.  O.  No.  21 

Smith.  A.  H..  agreement  between  regional  directors  and  labor  unions. .     G.  O.  No.  53 

Smith,  A.  H..  regional  director G.  O.  No.    4 

Soliciting  funds  for  political  purposes,  not  permitted  by  railroad  employees 

holding  municipal  offices G.  O.  No.  48 

(Substituted  for  G.  O.  No.  42  and  Sup.  No.  1  thereto) 

Southern  railroads ;  region G.  O.  No.    4 

Southern  Steamship  <  'o..  control  of G.  O.  No.  19 

Special  ser\'ice;  employees  paid  less  than  $30  per  month;  question  and  deci- 
sion      G.  0.  No.  27,  Interp.  6 

Staffmen;  rates  of  pay,  rules  for  overtime,  and  Avorking  conditions  (superseding 

G.  O.  No.  27  and  in  lieu  thereof) G.  O.  No.  27.  Sup.  No.  10 

G.  O.  No.  27.  Sup.  No.  13 
Standard  forms  of  monthly  ticket  and  excess  baggage  reiwrts.  sent  to  accounting 

officers  by  agents G.  O.  No.  49 

Standard  time G.  0.  No.  14 

States,  transportation  charges G.  O.  No.  25-A 

Station  agent  doing  special  ser^dce ;  rate  of  pay ;  question  and  decision . .    G.  O.  No.  27, 

Interp.  6 

Steamship  companies,  control  of G.  O.  No.  19 

Storage  charges;  rules G.  O.  No.  25 

Suits  against  carrier  corporations  lor  which  they  are  not  responsible,  to  be 

brought  directly  against  Director  General G.  0.  No.  50 

Suits  against  carriers G.  O.  No.  18-A 

Suits  to  collect  undercharges G.  O.  No,  55 

Sails  for  personal  injury G.  O.  No.  26 

Sunday  and  holiday  work,  rates  of  pay G.  O.  No.  27.  Sup.  No.  13 

Supersedeas  bond G.  0.  No.  50 

Supervisory  forces  (sec.  4.  Art.  III.  Sup.  No.  4  to  G.  0.  No.  27)  Article  V 

Interp.  3toG.  O.  No.  27  and  to  Sup.  No.  4,  Addenda  Nos.  1 
and  2.  Interp.  No.  1.  and  Amendment  No.  1  thereto 

Supplies;  inventory G.  O.  No.  10 

Supplies  and  materials,  accounts  of.  carriers  by  water G.  O.  No.  52 

Supplies,  purchase  of G.  0.  No.  33 

Suj)plies,  purchase  of;  for  construction,  acquisition,  or  chartering  of  certain 

equipment G.  O.  No.  35 

Supplies,  piu^chase  of ;  New  York  Canal  Section G.  O.  No.  22 

Switchmen's  Union  of  North  America;  agreement  with  regional  directors..   G.  O.  No. 53 

Systems,  transportation G.  0.  No.  1 

Tariffs  ordered  reissued  as  amended  (see  G.  0.  No.  7 1 G.  O.  No.  7.  Sup.  No.  1 

Taxes;  transactions  involving  water  lines  under  Federal  control G.  O.  No.  52 

Telegraphers,  agent;  rates  of  pay,  rules  for  overtime,  and  working  conditions 

(superseding  G.  O.  No.  27  and  in  lieu  thereof) G.  0.  No.  27,  Sup.  No.  10 

G.  0.  No.  27,  Sup.  No.  13 
Telegrai)hers.  Railmad.  Oder  of.  agreement  with  regional  directors. . .     G.  0.  No.  53 
Telegrai.)her8,  rates  of  i>ay.  rules  for  overtime,  and  working  conditions  (supersed- 
ing G.  O.  No.  27  and  in  lieu  thereof) G.  O.  No.  27.  Sup.  No.  10 

G.  0.  No.  27,  Sup.  No.  13 


429 

Telephone  operators,  except  switchboard  operators,  rates  of  pay,  rules  for  over- 
time,   aud   working   conditions   (superseding   G.    O.    No.    27   and  in   lieu 

thereof) tl.  O.  No.  27,  Sup.  No.  10 

G.  0.  No.  27,  Sup.  No.  13 
Telephoners,  agent,  rates  of  pay,  ndes  for  overtime,  and  working  conditions 

(superseding  G.  O.  No.  27  and  in  lieu  thereof) G.  O.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  13 

Ten  hours  per  dav.  rates  for  overtime  work  (Art.  II), 

G.  O.  No.  27,  Sup.  No.  7,  Interp.  No.  1 
G.  O.  No.  27,  Sup.  No.  8,  Interp.  No.  1 

Tenders  and  assistants G.  O.  No.  27,  Sup.  No.  8 

Terminals;  luiification G.  O.  No.  1 

Through  routings -     G.  O.  No.  1 

Ticket  agent,  assistant,  performing  work  of  city  ticket  agent  temporarily;  rate 

of  pay;  question  and  decision G.  O.  No.  27,  Interp.  7 

Ticket  sales,  interline  and  local,  standard  forms  for  reports G.  0.  No.  49 

Tickets;  apportionment  of  revenue  account  sale  of G.  O.  No.  32 

Tickets,  sale  of G.  O.  No.  25 

Time  change;  clocks  to  be  tiu-ned  back  (see  also  Daylight  saving) G.  O.  No.  45 

Time,  free ^-  ^-  ^o-    ^ 

Time,  free ;  demurrage -     G.  O.  No.    3 

Time^  standard G.  O.  No.  14 

Toll  chai-ges G.  0.  No.  33 

Tomlinson,  G.  A.,  appointment G.  O.  No.  22;  G.  O.  No.  33 

Tonnage  or  piecework  basis;  employees  earning  in  excess  of  43  cents  per  hour; 

rates  of  pay;  question  and  decision G.  O.  No.  27,  Sup.  No.  7,  Interp.  No.  2 

Tower  and  train  directors;  rates  of  pay,  rules  for  overtime,  and  working  con- 
ditions (superseding  G.  O.  No.  27  and  in  lieu  thereof) . .     G.  O.  No.  27,  Sup.  No.  10 

G.  0.  No.  27,  Sup.  No.  13 
Towermen;  rates  of  pay,  rules  for  overtime,  and  working  conditions  (sui^ersed- 

ing  G.  0.  No.  27  and  in  lieu  thereof) G.  O.  No.  27,  Sup.  No.  10 

G.  0.  No.  27,  Sup.  No.  13 
Tracks    (see    construction,    maintenance,    and    operation    of    new'  industry 

tracks) ^-  ^-  ^o-  1^ 

Tracks,  industry;  contracts;  discontinuance  of  use  of  tracks.     G.  O.  No.  15,  Sup.  No.  1 

Trades,  basic ;  compensation  for  helpers ;  shop  crafts 

G.  O.  No.  27.  Sup.  No.  4,  Amendment  No.  1 

Traffic,  contracts  for  transportation  of G.  0.  No.  35 

Traffic,  interstate  and  intrastate G.  O.  No.  7,  Sup.  No.  1 

Traffic  rates;  intrastate ;  American  Railway  Express  < 'o.  (sec.  4) G.  O.  No.  56 

Train,  crew  employees,  passenger,  designated  as  passenger  brakemen  or  flagmen 

(Art.  YI,  G.  O.  No.  27) G.  O.  No.  27.  Sup.  No.  12 

Train  porters G.  O.  No.  27,  Sup.  No.  12 

Train  and  tower  directors;  rates  of  pay,  rules  for  overtime,  and  working  con- 
ditions (superseding  G.  O.  No.  27  and  in  lieu  thereof)..     G,  O.  No,  27,  Sup,  No.  10 

G.  O.  No.  27,  Sup.  No.  13 

Transactions ;  carriers  by  water G.  0.  No.  52 

Transactions  involving  revenues,  expenses,   taxes,   rentals,   and  such  other 
items  as  ai-e  used  in  determining  the  water  line  operating  income  under 

Federal  control G.  0.  No.  52 

Transportation  charges;  basis Ci.  0.  No.  25 

Transportation  charges,  collection  of G.  O.  No.  25-A 

Transportation   charges,    collection   and    disposition    of    overcharges,    under- 
charges, and  agency  relief  claims G.  0.  No.  55 


430 

Transportation,  free,  exchange  of  advertising  for G.  O.  No.  6,  Sup.  No.  1 

G.  O.  No.  6,  Sup.  No.  2 

Transportation  of  property G.  O.  No.  33 

Transportation  systems G.  O.  No.    1 

G.  O.  No.  38 

Transportation  of  traffic,  contracts  for G.  O.  No.  35 

Travelers,  safety  of G.  O.  No.    8 

Travelers,  safety  upon  railroads  (see  also  G.  O.  No.  8) G.  O.  No.  46 

Treasurers,  Federal G.  O.  No.  37 

Treasurers,  local G.  O.  No.  37 

G.  O.  No.  37-A 

Treasurers'  reports G.  O.  No.  23,  Sup.  No.  1 

Treatment,  adjustment  of  controversies  between  American  Railway  Express 

Co.  and  its  employees G.  0.  No.  51 

Tribunal  named  for  adjustment  of  certain  disputes  between  American  Railway 
Express  Co.  and  its   employees;    Division  of  Labor  of   the  United  States 

Railroad  Administration  to  deal  with  controversies G.  0.  No.  54 

Tunnel  and  elevated  common  labor;  rates  for  overtime  work  (Art.  VIII) 

G.  O.  No.  27,  Sup.  No.  8,  Interp.  No.  1 
Unclaimed  or  refused  shipments,  sold  at  auction  after  60  days  by  carriers; 

notice  to  consignees G.  O.  No.  34-A 

(Substituted  for  G.  O.  No.  34) 

Uncollectible  undercharges G.  O.  No.  55 

Undercharges,  overcharges,  and  agency  relief  claims,  disposition  of. . .  G.  0.  No.  55 
Understanding,  agreement  between  regional  directors  and  labor  unions.  G.  0.  No.  53 
Understanding  between  Messrs.  A.  H.  Smith.  C.  H.  Markham,  R.  H.  Aishton, 
Hale  Holden.  B.  F.  Bush,  B.  L.  Winchell,  N.  D.  Maher,  regional  dii-ectors 
representing  railroads  in  their  respective  regions,  and  H.  B.  Perham,  presi- 
dent Order  of  Railroad  Telegraphers;  S.  E.  Heberling,  president  Switch- 
men's Union  of  North  America;  J.  J.  Forester,  president  Brotherhood  of 
Railway  Clerks;  A.  E.  Barker,  president  United  Brotherhood  of  Maintenance 

of  Way  Employees G.  O.  No.  53 

United   Brotherhood  of  Maintenance   of   Way   Employees,   agreement  with 

regional  directors G.  O.  No.  53 

United  States  Government  cash,  carriers  by  water G.  0.  No.  52 

United  States  Government  transportation  charges G.  0.  No.  25-A 

United  States  mail,  carrying  of  (Art.  VI)  (superseding  G.  0.  No.  27  and  in  lieu 

thereof) ^ G.  O.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  13 

Universal  interline  waybilling  and  standard  forms G.  0.  No.  11 

Upholsterers G.  0.  No.  27,  Sup.  No.  4,  Addendum  No.  2 

Utilization  without  regard  to  ownership G.  0.  No.    1 

Vacancies,  filling  of G.  0.  No.    9 

Vacancy  in  Board  of  Railway  Wages  and  Working  Conditions G.  O.  No.  53 

Vacations  (Art.  \'IIIj  (sujierseding  G.  O.  No.  27  and  in  lieu  thereof) 

G.  0.  No.  27,  Sup.  No.  10 

Wage  commission G .  O .  No.    5 

Wage  order;  differences  of  opinion  necessitating  interpretations;  application 
made  by  regional    dirctor,  chief  executives,  chairman  Railway  Boards  of 

Adjustment,  or  Director  Division  of  Labor G.  O.  No.  27,  Sup.  No.  6-A 

Wages G.  O.  No.  27 

G.  O.  No.  27,  Sup.  No.  I 
Wages — Conductors,  porters,  maids G.  O.  No.  27,  Sup.  No.  2 


431 

Wages  and  hours G.  O.  No.  27 

G.  O.  No.  27,  Sup.  No.  3 

G.  O.  No.  27,  Interp.  No.  1 

G.  O.  No.  29 

Wages,  hours,  conditions  of  employment G.  O.  No.  27,  Sup.  No.  4 

Wages,  hours,  and  other  conditions  of  employment G.  O.  No.  27,  Sup.  No.  5 

Wages  and  hours,  considered  by  Board  of  Railroad  Wages  and  Working  Condi- 
tions  "- G.  O.  No.  53 

Wages,  inequalities,  American  Railway  Express  Co.,  investigated  by  Board  of 

Railroad  Wages  and  Working  Conditions G.  O.  No.  27,  Sup.  No.  9 

Wages,  overtime  work G.  O.  No.  27,  Sup.  No.  7,  Interp.  No.  1 

G.  O.  No.  27,  Sup.  No.  8,  Interp.  No.  1 

Wages;  Railroad  Wage  Commission G-  0.  No.  5 

Wages,  rates,  and  methods  of  computation G.  O.  No.  27 

Wages;  report  of  Railroad  Wage  Commission G.  0.  No.  8 

Wages  and  Working  Conditions  Board;  duties  and  authority  extended.     G.  0.  No.  27, 

Sup.  No.  6 

Water  line  operating  income  under  P'ederal  control G.  O.  No.  52 

Waybills,  destruction  or  confiscation  of  property G.  O.  No.  55 

Waybills,  notations  of  exceptions  on  waybills G.  O.  No.  41 

Wayliills,  universal  interline  waybilling G.  O.  No.  11 

Weekly  cash  report G.  O.  No.  23 

G.  O.  No.  23,  Sup.  No.  1 
Weekly  paid  employees,  hourly  rate  (superseding  G.  0.  No.  27  and  in  lieu 

thereof) G.  O.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  13 

Weights,  grain  loading G.  O.  No.  57 

Western  railroads,  region G.  O.  No.    4 

Wheel-shop  employees  (G.  O.  No.  27,  Sup.  No.  4,  Art.  I,  sec.  No.    1  and 

1-B) Interp.  3  to  G.  0.  No.  27  and  to  Sup.  No.  4, 

Addenda  Nos.  1  and  2,  Interp.  No.  1,  and  Amendment  No.  1  thereto 

Willcox,  William  R. ,  Railroad  Wage  Commission G.  O.  No.    5 

Winchell,  B.  L. ,  agreement  between  regional  directors  and  labor  unions .     G.  O.  No.  53 
Work  involving  charges  to  capital  account  not  in  excess  of  $25,000  (amendment 

to  par.  5,  G.  O.  No.  12) G.  O.  No.  12,  Sup.  No.  1 

Work  involving  charges  to  capital  at^count  of  $1,000  or  more  and  $10,000  or 

more G.  O.  No.  12,  Sup.  No.  1 

Working  conditions,  inequalities,  American  Railway  Express  Co.,  investigated 

by  Board  of  Railroad  Wages  and  Working  Conditions. . .     G.  O.  No.  27,  Sup.  No.  9 
Working  conditions,  overtime,  rates  of  pay  for  certain  employees  (superseding 

G.  O.  No.  27  and  in  lieu  thereof) G.  0.  No.  27,  Sup.  No.  10 

G.  O.  No.  27,  Sup.  No.  11 
G.  O.  No.  27,  Sup.  No.  13 
Working  conditions  and  pay  rates  for  clerical  forces  and  certain  other  employ- 
ees      G.  O.  No.  27,  Sup.  No.  7 

Yard  engineers,  firemen,  conductors,  foremen,  brakemen,  helpers,  pay  of 

G.  O.  No.  27,  Interp.  1 


INDEX  TO  CIRCULARS. 

Abilene   &    Southern    Railway   included  in   Southwestern   region   July   10, 

1918. Cir.  No.  35,  Sup.  No.  1 

Accounting  department  to  handle  claims  for  overcharge  and  relief  claims.     Cir.  No.  49 

Accounting,  Division  of  Public  Ser\dce  and  Accounting Cir.  No.    1 

Acting  treasurer  for  United  States  Railroad  Administration,  Angus  D.  Mc- 
Donald       Cir.  No.  19 

Acting  treasurer  United  States  Railroad  Administration,  L.  G.  Scott,  appoint- 
ment of - Cir.  No.  45 

Actuary  of  United  States  Raihoad  Administration,  Theodore  H.  Price,  duties 

of Cir.  No.  27 

Adams,  A.  C,  Board  of  Adjustment  No.  2 Cir.  No.  38 

Additions,  betterments,  financial  needs,  carriers  to  report  in  duplicate. .     Cir.  No.  25 

Adjustment  Board  No.  1 Cir.  No.  39 

Adjustment  Board  No.  1,  organization  of Cir.  No.  22 

Adjiistment  Board  No.  2,  organization  of Cir.  No.  38 

Adjustment  Board  No.  3,  organization  of Cii-.  No.  65 

Adjustment  of  fire  losses Cir.  No.  67 

Advisory  Committee  of  Coastwise  Steamship  Line,  creation  of Cir.  No.  23 

Advisory  Committee  to  cooperate  with  Insurance  and  Fire  Protection  Section 
of  Finance  and  Purchases  Division;    members,  R.  M.  Bissell,  Charles  E. 

Mather,  D.  R.  McLennan,  A.  M.  Schoen Ch-.  No.  54 

Agency  of  United  States  Railroad  Administration,  Bureau  for  Safe  Transporta- 
tion of  Explosives  and  Other  Dangerous  Articles Cir.  No.  63 

Agreements,  property  valuation,  fire  losses Cir.  No,  67 

Aishton,R.  H., regional  dire<"torof  Northwestern  Region,  appointment  of.  Cir.  No.  33 
Akron  &  Barberton  Belt  Railroad  added  to  Eastern  Region  July  10, 1918. .  Cir.  No.  41 
Akron  Union  Passenger  Depot  Co.  added  to  Eastern  Region  July  10, 1918.     Cir.  No.  41 

Alabama  &  Vicksburg  Railway  added  to  Southern  Region Cir.  No.  42 

Allegheny  Region  created,  office  Philadelphia Cir.  No.  28 

Allegheny  Region,  railroads  included  July  10,  1918 Cir.  No.  28,  Sup.  No.  1 

Allegheny  Region,  railroads  transferred  to,  from  Eastern  Region Cii".  No.  66 

Allegheny  Region,  railroads  transferred  from  Eastern  Region Cir.  No.  68 

Alton    &    Southern    Railway    included    in    SouthAvestern    Region    July    10, 

1918 Oir.  No.  35,  Sup.  No.  1 

American  Railway  Association,  Commission  on  Car  Service Cir.  No.     2 

Appointment,  Charles  A.  Lutz,  treasurer  United  States  Railroad  Administration, 

vice  L.  G.  Scott,  resigned Cir.  No.  62 

Appointment  of  L.  G.  Scott,  acting  treaeurer  United  States  Railroad  Adminis- 
tration      Cir.  No.  45 

Arizona  Eastern  Railroad  Co.  included  in  Central  Western  Region  July  10, 

1918 Cir.  No.  34,  Sup.  No.  1 

Arrests,  for  thefts <''ir.  No.  14 

Ashland    Coal   <fe    Iron    Railway   included   in    Pocahontas   Region  July    10, 

1918 Cir.  No.  30,  Sup.  No.  1 

Assistant  actuary  to  United  States  Railroad  Administration,  Ballard  Dunn, 

Bureau  for  Suggestions  and  Complaints Cir.  No.  50 

(432) 


433 

Assistant    Diret-tor    General    of    Railroads,    Walker    D.    Hinee,    appi'imment 

of Cir.  No.  26 

Assistant  to  the  Director  General  of  Railroads Cir.  No.    1 

Cir.  No.  37 
Atchison  &  Eastern  Bridge  Co.  included  in  Central  Wesu-rn  Region  July  10, 

1918 Cir.  No.  34,  Sup.  No.  1 

Atchison,  Topeka  &  Santa  Fe  Railway  in  ("emral  Western  Region....     Cir.  No.  34 
Atchison  Union  Depot  &  Railroad  Co.  included  in  Central  Western  Region 

July  10,  1918 Cir.  No.  34,  Sup.  No.  1 

Atlanta,  Ga. ,  office  of  Southern  Region Cir,  No.  29 

Atlantic  City  Railroad  in  Allegheny  Region Cir.  No.  28 

Back  payments Cir.  No.  36 

Baltimore  &  Ohio  Chicago  Terminal  Railroad  included  in  Northwestern  Region 

July  10,  1918 Cir.  No.  33,  Sup.  No.  1 

Baltimore  &  Ohio  Railroad  in  Allegheny  Region  (east  of  and  including  Parkers- 
burg  and  Pittsbiu-gh) (lir.  No.  28 

Baltimore  &  Ohio  Railroad  (west  of  Parkersbmg  and  Pittsburgh)  transferred 

from  Eastern  to  Allegheny  Region Cir.  No.  66 

Banks  and  trust  companies  in  which  funds  of  United  States  Railroad  Adminis- 
tration or  of  the  various  Federal  treaeiirers  are  deposited,  in  future  must 

pay  interest  at  specified  rates Cir.  No.  59 

Barnes,  W.  L. ,  Car  Sei-vice  Section Cir.  No.    2 

Behavior  of  officers  and  employees  {see  also  G.  0.  No.  8) Cir,  No.  20 

Belnap,  Hiram  W. ,  appointment CUr.  No.    7 

Belt    Railway    of    Chicago    included    in    Northwestern    Region    July    10, 

1918 C^.  No.  33,  Sup,  No.  1 

Bessemer  &  Lake  Erie  Railroad  in  Allegheny  Region Cir.  No.  28 

Betterments,  additions,  financial  needs,  carriers  to  report  in  duplicate. .     Cir.  No.  25 

Birmingham  &  Northwestern  Railway  added  to  Southern  Region (I?ir.  No.  42 

Bissell,  R.  M.,  member  Advisory  Committee  to  cooperate  A\-ith  Insurance  and 

Fire  Protection  Section Cir.  No.  54 

Black,  W.  M.  (Maj.  Gen.),  appointment Cir.  No.    6 

Board  of  Adjustment  No.  1 , Cir.  No.  39 

Board  of  Adjustment  No.  1,  organization  of Cir.  No.  22 

Board  of  Adjustment  No.  2,  organization  of Cir.  No.  38 

Board  of  Adjustment  No.  3,  meeting  for  organization,  officers  and  members  of, 

dates  for  meetings  1918  and  1919,  duties Cir.  No.  65 

Board  of  Railroad  Wages  and  Working  Conditions,  organization  of Cir.  No.  31 

Bonds,  coupon Cii*.  No.  43 

Bonds,  Liberty Cir.  No.  51 

Bonds,  Liberty,  back  payments Cir.  No.  36 

Bonds,  Liberty,  officers'  and  employees'  subscription  to Cir.  No.  18 

Bonds,  Liberty,  register Cir.  No.  43 

Bonds,  Liberty,  wage  increase Cir.  No.  24 

Bonds,  registered Cir,  No.  43 

Boston  Terminal  Co.,  added  to  Eastern  Region  July  10,  1918 Cir.  No.  41 

Bracken,  H.  M.  (Dr.),  appointed  member  committee  on  health  and  medical 

relief Cir.  No.  58 

Briefs  and  documentary  evidence,  submissions  to  Railway  Board  of  Adjust- 
ment No.  3 Cir.  No.  65 

Brooklyn  Eastern  District  Terminal  Railroad,  added  to  Eastern  Region  July  10, 

1918 Cir.  No.  41 

Buffalo  Creek  Railroad,  added  to  Eastern  Region  July  10,  1918 Cir.  No.  41 

105889°— 19 -28 


434 

Buffalo  &  Susquehanna  Railroad  CWporation,  included  in  Allegheny  Region 

July  10,  1918 Cir.  No.  28,  Sup.  No.  1 

Bmeau     for     Safe     Transportation     of     Explosives    and     Other     Dangerous 

Articles ^'i^-  No.  63 

Bureau  for  Suggestions  and  Complaints  organized  and  in  charge  of  Theodore 
H.  Price,  actuary  to  United  States  Railroad  Administration,  Ballard  Dunn 

assistant  actuary ^^-  No.  50 

Burgess,  F.  A.,  Railway  Board  of  Adjustment  No.  1 Cir.  No.  22 

Bush,  B.  F.,  regional  director  of  Southwestern  Region,  appointment  of. .     Cir.  No.  35 
Business  houses  and  shippers  should  discontinue  Christmas  and  other  holiday     . 

presents  to  railroad  officers  and  employees Cir  No.   64 

Butte,  Anaconda  &  Pacific  Railway  Co.  included  in  Northwestern  Region 

July  10,  1918 Cii--  No.  33,  Sup.  No.  1 

Cale,    G.   W.    (jr.),   appointed   member  committee   on   health  and    medical 

relief Cir.  No.  58 

Calumet    Western    Railway    included    in    Northwestern    Region    July    10, 

1918 Cir.  No.  33,  Sup.  No.  1 

Camas     Prairie     Raihoad     included     in     Northwestern     Region     July     10, 

1918 Cir.  No.  33,  Sup.  No.  1 

Canals,  committee  on  inland  waterways Cir.  No.    6 

Capital  Expenditures  Division,  creation Cir.  No.    9 

Car  construction,  test  and  inspection  of,  materials  for Cii-.  No.  15 

Car  Repaii-  Section  of  Division  of  Transportation Cir.  No.  16 

Car  Service,  reports Cu-.  No.    2 

Car  Service  Section,  organization  and  duties Cir.  No.    2 

Carr,  H.  J.,  Board  of  Adjustment  No.  2 Cir.  No.  38 

Carriers  must  submit  statement  marked  "Nothing  to  report"  each  month  in 
which  there  are  no  changes  in  salaries  of  officers  receiving  $3,000  to  $10,000  or 

more  (see  also  G.  O.  No.  9) -     Cir.  No.  11 

Carriers  to  make  report  in  duplicate;  one  to  director  of  Division  of  Capital  Ex- 
penditures and  the  other  to  regional  director;  additions,  betterments,  financial 

needs ^'"-  No.  25 

Cars,  supervision  of  condition  of  and  repairs  to Cir.  No.    6 

Carter,  W.  S.,  appointment ^^-  No.    1 

Cash,  control  of Cir.  No.  12 

Censoring,  system  of,  by  telegraph  section,  to  reduce  number  and  length  of 

telegraphic  communications Cir.  No.  61 

Central  Railroad  of  New  Jersey  in  Allegheny  Region Cir.  No.  28 

Central  Union  Depot  of  Cincinnati,  added  to  Eastern  Region  July  10, 1918    Cir.  No.  41 

Central  Western  Region  created,  office,  Chicago Cir.  No.  34 

Central  Western  Region;  railroads  included  July  10,  1918...     Cir.  No.  34,  Sup.  No.  1 

Chairman  of  Coastwise  Steamship  Advisory  Committee,  L.  J.  Spence Cir.  No.  23 

Chambers,  Edward,  appointment Cir.  No.    1 

Cheriy  Tree  &  Dixonville  Railroad  included  in  Allegheny  Region  July  10, 

1918 Cii.  No.  28,  Sup.  No.  1 

Chesapeake  &  Ohio  Railway,  east  of  Louisville,  Ky.,  in  Pocahontas  Region 

Cir.  No.  30 

Chicago  &  Alton  Railroad  in  Central  Western  Region Cir.  No.  34 

Chicago,  Burlington  &  Quincy  Railroad  in  Central  Western  Region Cir.  No.  34 

Chicago  &  p:astern  Illinois  Railroad  in  Central  Western  Region Cir.  No.  34 

Chicago  Great  Western  Railroad  in  North w(;8tern  Region Cir.  No.  33 

Chicago  Heights  Terminal  Tran8f(^r  Railroad  included  in  Northwestern  Region 
July  10,  1918 Cir.  No.  33,  Sup.  No.  1 


435 

Chicago  Junction  Railway  included  in  Northwestern  Region,  July  10,  1918.. 

Cir.  No.  33,  Sup.  No.  1 
Chicago,  Milwaukee  &  Gary  Railroad  included  in  Northwestern  Region,  July 

10,  1918 ." Cir.  No.  33,  Sup.  No.  1 

Chicago,  Milwaukee  &  St.  Paul  Railway  in  Northwestern  R^on Cir.  No.  33 

Chicago  &  North  Western  Railway  in  Northwestern  Region Cir.  No.  33 

Chicago,  Peoria  &  St.  Louis  Railroad  in  Central  Western  Region Cir.  No.  34 

Chicago  River  &  Indiana  Railroad  included  in  Northwestern  Region  July  10, 

1918 Cir.  No.  33,  Sup.  No.  1 

Chicago,  Rock  Island  &  Pacific  Railway  (except  St.  Louis  to  Kansas  City;  lines 
east  of  El  Reno;  lines  El  Reno  to  Memphis  and  branches,  and  south  of  Chick- 

asha)  in  Central  Western  Region Cir.  No.  34 

Chicago,  Rock  Island  &  Pacific  Railway  (Tucumcari,  N.  Mex.,  to  El  Reno, 
Okla. ;  south  of  Herington,  Kans.,  to  Chickasha,  Okla.,  including  branches), 
transferred  to  Southwestern  Region  July  10,  1918,  from  Central  Western 

Region Cir.  No.  35,  Sup.  No.  1 

Chicago,  St.  Paul,  Minneapolis  &  Omaha  Railway  in  Northwestern  Region.. 

Cir.  No.  33 
Chicago,  Terre  Haute  &  Southeastern  Railway  in  Central  Western  Region  Cii".  No.  34 
Chicago  Union  Station  Co.  included  in  Northwestern  Region  July  10,  1918. . 

Cir.  No.  33,  Sup.  No.  1 

Chicago  &  Western  Indiana  Railroad  included  in  Northwestern  Region 

Cir.  No.  33,  Sup.  No.  1 
Chief  of  Secret  Service  and  Police  Section,  W.  J.  Flynn;  office,  Southern  Rail- 
way Building,  Washington,  D.  C Cir.  No.  69 

Chi-istmas  and  other  holiday  presents  from  shippers  and  business  houses  to 

officers  and  employees  of  railroads  should  be  discontinued Cir.  No.  64 

Cincinnati,  Lebanon  &  Northern  Railway,  transferred  from  Eastern  to  Alle- 
gheny Region Cii-.  No.  66 

Claims,  overcharge,  and  relief  claims  to  be  handled  by  accounting  depart- 
ment      Cir.  No.  49 

Claims,  personal  injury  and  damage  to  property,  legal  department Cir.  No.  49 

Classification,  deferred Cir.  No.  57 

Clyde  Steamship  Co.,  Coastwise  Steamship  Ad\'isory  Committee Cir.  No.  23 

Clyde  Steamship  Co.,  properties  now  under  Federal  control  will  be  included  in 
coastwise  steamship  lines;  office,  Southern  Pacific  Pier  49,  North  River,  New 

York Cir.  No.  52 

Coastwise  steamship  lines,  control  of Cir.  No.  23 

Coastwise  steamship  lines  to  include  the  properties  now  under  Federal  control, 
of  the  Old  Dominion  Steamship  Co.,  Ocean  Steamship  Co.,  Southern  Steam- 
ship Co.,  Merchants'  &  Miners'  Transpoitation  Co.,  Mallory  Steamship  Co., 
Clyde  Steamship  Co.,  Southern  Pacific  Co.,  Atlantic  Steamship  Lines,  Federal 

manager  appointed  Sept.  1,  1918,  H.  B.  Walker Cii-.  No.  52 

Code  systems  in  telegraph Cir.  No.  61 

Coke  &  Coal  Railway  in  Allegheny  Region Cir.  No.  28 

Colorado  &  Southern  Railway  in  Central  Western  Region Cir.  No.  34 

Colorado  Springs  &  Cripple  Creek  District  Railway  included  in  Central  Western 

Region  July  10,  1918 Cir.  No.  34,  Sup.  No.  1 

Columbus  and  Cincinnati,  Ohio,  including  the  Chesapeake  &  Ohio  Northern  in 

Pocahontas  Region Cir.  No.  30 

Commission  on  Car  Service Cir.  No.    2 

Commission,  wage Cir.  No.  24 


436 

Committee,  health  and  medical  relief,  appointment  of — Dr.  D.  Z.  Dunott, 

chairman;  Dr.  G.  W.  Cale,  jr..  Dr.  Victor  G.  HeiseJ,  Dr.  T.  R.  Crowder,  Dr. 

H.  M.  Bracken — will  establish  office  in  Washington,  D.  C Cir.  No.  58 

Committee  on  Inland  Waterways Cir.  No.    6 

Committee  on  Inland  Waterways  discontinued Cir.  No.  53 

Complaints,  organization  of  Bureau  for  Suggestions  and  Complaints Cir.  No.  50 

Condition  of  locomotives,  super\dsion  of Cir.  No.    3 

Condition  of  and  repairs  to  cars,  supervision  of Cir.  No.  16 

Construction  of  standard  locomotives  and  cars,  test  and  inspection  of  materials 

for Cir.  No.  15 

Construction,  street  or  road;  other  public  improvements Cir.  No.  44 

Canceled Cir.  No.  44-A 

Contracts,  fire  insurance Cir.  No.  21 

Control  of  coastwise  steamship  lines Cir.  No.  23 

Controversies Cir.  No.  38 

Cir.  No.  39 
Controversies  submitted  to  Railway  Board  of  Adjustment  No.  3,  through  Di- 

Aision  of  Labor,  United  States  Railroad  Administration Cir.  No.  65 

Copper  Range  Railroad  included  in  Northwestern  Region  July  10,  1918 

Cir.  No.  33,  Sup.  No.  1 

Counsel,  general,  appointment  of Cir.  No.    1 

Coupon  bonds Cir.  No.  43 

Creation  of  coastwise  steamship  lines  Aug.  21,  1918 Cir.  No.  52 

Creation  of  Division  of  Inland  Waterways,  G.  A.  Tomlinson  appointed  director, 

Washington,  D.  C -  -  -  -  -     Cir.  No.  53 

Crowder,  T.  R.  (Dr.)  appointed  member  Committee  on  Health  and  Medical 

Relief Cir.  No.  58 

Cumberland  &  Pennsylvania  Railroad,  included  in  Allegheny  Region  July  10, 

1918 Cir.  No.  28,  Sup.  No.  1 

Cumberland  Valley  Railroad  in  Allegheny  Region Cir.  No.  28 

Damage  or  loss  by  lire Cii-.  No.  21 

Damage  or  loss  of  property  by  fire Cii-.  No.  67 

Dangerous  articles  and  explosives,  transportation  of Cir.  No.  63 

Dates  for  monthly  meetings  in  1918  and  1919— Railway  Board  of  Adjustment 

Xo.  3 C'ir.  No.  65 

Dayton  &  Union  Railroad,  added  to  Eastern  Region  July  10,  1918 Cir.  No.  41 

Dayton  &  Union  Railroad,  transferred  from  Eastern  to  Allegheny  Region 

Cii-.  No.  66 

Dayton  Union  Railway,  added  to  Eastern  Region  July  10,  1918 Cii-.  No.  41 

Dee,  Richard  P.,  member  Railway  Board  of  Adjustment  No.  3 Cir.  No.  65 

Deferred  classification Cir.  No.  57 

DeGroot,  E.  H.,  jr.,  Car  Service  Section Cir.  No.    2 

DeLanoy,  William  C,  appointed  manager  Marine  Insui-ance  Section;  office, 

Washington,  D.  C,  duties Cir.  No,  60 

Demand  loans  and  deposits,  control  of Cir.  No.  12 

Denver  &  Rio  Grande  Railroad  in  Central  Western  Region Cir.  No.  34 

Denver  Union  Terminal  Railway  included  in  Central  Western  Region  July  10, 

1918 Cir.   No.  34,  Sup.  No.  1 

Deposits,  control  of < -ir.  No.  12 

Deposits,  railroad t'ir.  No.  59 

Dermody,  J.  J.,  Board  of  Railroad  Wages  and  Working  Conditions Cir.  No.  31 

Dee  Moinee  Union  Railway  included  in  Northwestern  Region  July  10,  1918.... 

Cir.  No.  33,  Sup.  No.  1 


437 

Des  Moines  Western  Railway  included  in  Xorth western  Region  July  10,  1918. . 

Cir.  No.  33,  Sup.  No.  1 

Detailed  to  Washington  temporarily,  Angus  D .  McDonald Cir.  No.  19 

Detectives,  Property  Protection  Section Cir.  No.  14 

Detroit,  Bay  City  &  Western  Railway  added  to  Eastern  Region  July  10, 1918. 

Cir.  No.  41 

Detroit  Terminal  Railroad  added  to  Eastern  Region  July  10,  1918 Cir.  No.  41 

Dickey,  Walter  S.,  appointment Cir.  No.    6 

Director  Allegheny  Region,  Charles  H.  Markham,  appointment  of Cir.  No.  28 

Director  Centi-al  Western  Region,  Hale  Holden,  appointment  of Cir.  No.  34 

Diiector  Di^asion  of  Inland  Waterways  appointed,  Mr.  G.  A.  Tomlineon .     Cir.  No.  53 
Duector  Di^"ision  of  Labor,  United  States  Railroad  Administration,  to  con- 
sider controversies  not  covered  by  General  Order  No.  13  and  General  Order 

No.  29 Cir.  No.  39 

Director  Division  of  Operation,  Carl  R.  Gray Cir.  No.  32 

Director  General  of  Railroads,  assistant  to Cir.  No.  37 

Duector  Northwestern  Region,  R.  H.  Aishton,  appointment  of Cii.  No.  33 

Director  Pocahontas  Region,  N.  D.  Maher,  appointment  of Cir.  No.  30 

Dii-ector  Southern  Region,  B.  L.  Winchell,  appointment  of Cir.  No.  29 

Dii-ector  Southwestern  Region,  B.  F.  Bush,  appointment  of Cir.  No.  35 

Disbursements,  rules  regarding Cir.  No.  12 

Disputes Cir.  No.  38 

Distrust  and  suspicion,  employees  not  to  live  in  atmosphere  of Cii*.  No.  20 

Dividends,  payment  of Cir.  No.  12 

Division  of  Inland  Waterways  created  and  Mr.  G.  A.  Tomlinson  appointed  di- 
rector, office,  Washington,  D.  C Cir.  No.  53 

Division  of  Labor  Director,  United  States  Railroad  Administration  to  consider 
(^ontroversiec  not  covered   by  General  Order  No.   13  and  General  Order 

No.  29 Cir.  No.  39 

Division  of  Operation  created;  Carl  R.  Gray  appointed  director Cir.  No.  32 

Division  of  Operation,  Secret  Service  and  Police  Section  created;  W.  J.  Flynn 
appointed  chief;  office,  Southern  Railway  Building,  Washington,  D.  C.     Cir.  No.  69 

Division  of  Transportation  changed  to  Division  of  Operation Cir.  No,  32 

Division    of    Transportation,    Marine    Section    discontinued    September    1, 

1918 Cir.  No.  5-5 

Do?k,  W.  N.,  Railway  Board  of  Adjustment  No.  1 Cii".  No,  22 

Doherty,  Philip  J.,  appointment  of Cir.  No,  14 

Drafts,  control  of  time  drafts  and  deposits Cir.  No.  12 

Duluth  &  Iron  Range  Railroad  included  in  Northwestern  R^ion  July  10, 

1918 Cir.  No.  33,  Sup.  No.  1 

Duluth,   Missabe  &   Northern   Railway  included   in   Northwestern   Region 

July  10,  1918 Cir.  No.  33,  Sup.  No.  1 

Duluth,  South  Shore  &  Atlantic  Railway  included  in  Northwestern  Region 

July  10,  1918 Cir.  No.  33,  Sup.  No.  1 

Dunn,  Ballard,  assistant  actuary  to  United  States  Railroad  Administration, 

organization  of  Bureau  for  Suggestions  and  Complaints Cir.  No.  50 

Dunott,  D.  Z.  (Dr.),  chairman  Committee  on  Health  and  Medical  Relief, 

appointment Cir.  No.  58 

Duplicate  report,  carriers' ,  additions,  betterments,  financial  needs Cir.  No.  25 

East  St.  Louis  National  Stock  Yards  Co.  included  in  Southwestern  Region 

July  10,  1918 Cii-.  No.  35,  Sup.  No.  1 

East  St.  Louis  Suburban  Railway  included  in  Southwestern  Region  July  10, 

1918 Cir.  No.  35,  Sup.  No.  1 


438 

Eastern  Region,  railroads  added  to,  July  10,  1918:  Akron  &  Barberton  Belt 
Railroad;  Akron  Union  Passenger  Depot  Co.;  Boston  Terminal  Co.;  Brooklyn 
Eastern  District  Terminal  Railroad;  BulTalo  Creek  Railroad;  Central  Union 
Depot  o  Cincinnati;  Dayton  &  Union  Railroad;  Dayton  Union  Railway; 
Detroit,  Bay  City  &  Western  Railway;  Detroit  Terminal  Railroad;  Indian- 
apolis Union  Railway;  Jay  Street  Terminal  (New  York);  Kentucky  & 
Indiana  Terminal  Railroad;  New  York  Dock  Co.  Railroad;  Toledo  Terminal 

Railroad ;  Troy  Union  Railroad ;  Zanesville  Terminal  Railroad Cir,  No,  41 

Eastern  Region,  railroads  transferred  to  Allegheny  Region Cir.  No.  66 

Cir.  No.  68 
Economic  problems,  actuary  of  United  States  Railroad  Administration..  Cir.  No.  27 
Elgin,  Joliet  &  Eastern  Railway  included  in  Northwestern  Region  July  10, 

1918 Cir.  No.  33,  Sup.  No.  1 

El  Paso  &  Southwestern  System  in  Central  Western  Region Cir.  No.  34 

Embargoes;  reports Cir.  No.  2 

Employees;  controversies Cir.  No.  38 

Cir.  No.  39 
Employees;    Fourth    Liberty    Loan;    Director   General    McAdoo   appeals   for 

cooperation Cir.  No.  56 

Cir.  No.  56-A 

Employees  not  to  live  in  atmosphere  of  suspicion  and  distrust Cir.  No.  20 

Employees  and  officers,  behavior  of  {see  also  G.  O.  No.  8) Cir.  No.  20 

Employees  and  officers,  in  connection  with  Liberty  loans Cir.  No.  18 

Employees  and  officers  of  railroads,  discontinuance  of  Christmas  presents 

from  shippers  and  business  houses  to Cir.  No.  64 

Employees  and  officials  urged  to  cooperate  in  securing  "100  per  cent"  on 

every  line,  in  subscriptions  to  Fourth  Liberty  Loan Cir.  No.  56-A 

Employees,  patriotic  support  and  loyalty  of;  hours,  wages,  behavior  (see  also 

G.  O.  No.  8) Cir.  No.  20 

Employees;  registrants;  Provost  Marshal  General's  statement   sent  by  Mr. 

McAdoo  to  regional  directors Cir.  No.  57 

Employees'  salaries,  report  account  of  income  tax Cir.  No.  8 

Englewood  Connecting  Railway  included  in  Northwestern  Region  July  10, 

1918 Cir.  No.  33,  Sup.  No.  1 

Escanaba  &   Lake  Superior    Railroad    included    in    Northwestern    Region 

July  10,  1918 Cir.  No.  33,  Sup.  No.  1 

Evansville  &  Indianapolis   Railroad    included   in  Central  Western  Region 

July  10,  1918 Cir.  No.  34,  Sup.  No.  1 

Expenditures,  Capital,  creation  of  Division  of Cir.  No.  9 

Expenditures,  fire  losses Cir.  No,  67 

Expenses,  New  York  offices Cir.  No.  10 

Expenses  and  salaries  of  officers  not  reasonal)ly  required  for  operation  of 

railroads Cii".  No.  17 

Explosives  and  other  dangerous  articles,  transportation  of Cii".  No.  63 

Federal  manager  of  coastwise  steamship  lines  appointed  September  J,  1918, 

H.  B.  Walker;  office,  Southern  Pacific  Pier  49,  North  River,  N.  Y.  - . .     Cir.  No.  52 
Federal  manager  of  Pullman  Car  Lines  appointed,  L.  S.  Taylor,  office  Pullman 

Building,  Chicago Cir.  No.  47 

Finance  and  Purchases  Division Cir.  No.  1 

Financial  needs,  additions,  betterments,  carriers  to  report  in  duplicate.     Cir.  No.  25 

Financial  offices.  New  York Cir.  No.  10 

Fire  insurance  contracts Cir.  No.  21 

Fire,  loss  or  damage  to  property <  'ir.  No.  67 


439 

Fire  Loss  and  Protection,  name  changed  from  Insurance  and  Fire  Protection 

Section Cir.  No.  54-A 

Fire  Loss  Protection  Section,  reports  of  fires Cir.  No.  67 

Floating  equipment  and  marine  and  war  risk  on  vessels,  insurance  for,  to  be 

provided  by  Marine  Insurance  Section Cir.  No.  60 

Fl}Tin,  W.  J.,  appointed  chief  of  Secret  Service  and  Police  Section  of  Division 

of  Operation;  office,  Southern  Railway  Building,  Washington,  D.  C.  .      Cir.  No.  09 
Fort  Dodge,  Des  Moines  &  Southern  Railroad  included  in  Northwestern  Region 

July  10,  1918 Cir.  No.  33,  Sup.  No.  1 

Fort  Worth  Belt  Railroad  included  in  Southwestern  Region  July  10, 1918 .     Cir.  No.  35, 

Sup.  No.  1 

Fort  Worth  &  Denver  City  Railway  in  Southwestern  Region Cir.  No.  35 

Fort  Worth  &  Rio  Grande  Railway  in  Southwestern  Region Cir.  No.  35 

Fort  Worth  Union  Passenger  Station  Co.  included  in  Southwestern  Region 

July  10,  1918 Cir.  No.  35,  Sup.  No.  1 

Foiu-th  Liberty  Loan;  Director  General  McAdoo  urges  cooperation;  suggests 

subscribing  through  railroads Cu*.  No.  56 

Cir.  No.  56-A 
Fourth  Liberty  loan;  officials  and  employees  urged  to  cooperate  in  securing  a 

"  100  per  cent "  result  on  every  line Cir.  No.  56-A 

Freight  Claim  Section  of  Division  of  Law  hereby  established;  Mr.  John  H. 
Howard  appointed  manager;  office  in  Southern  Railway  Building,  Washing- 
ton, D.  C Cii".  No.  48 

Gaines,  F.  F.,  \ice  chairman  Board  of  Railroad  Wages  and  Working  Condi- 
tions      Cii.  No.  31 

Galveston,  Harrisburg  &  San  Antonio  Railway  in  Southwestern  Region . .     Cu-.  No.  35 
Galveston,  Houston  &  Henderson  Railroad  included  in  Southwestern  Region 

July  10,  1918 Cii-.  No.  35,  Sup.  No.  1 

Galloway,  C.  W.,  Cincinnati,  Ohio,  Federal  manager  Baltimore  &  Ohio  Railroad 

west  of  Parkersburg  and  Pittsburgh Cir.  No.  66 

General  counsel,  appointment Cir.  No.    1 

Gerrey,  T.  H.,  vice  chairman  Railway  Board  of  Adjustment  No.  3 Cir.  No.  65 

Gould,  E.  A.,  member  Railway  Board  of  Adjustment  No.  3 Cir.  No.  65 

Grand  Rapids  &  Indiana  Railroad  transferred  from  the  Eastern  to  the  Allegheny 

Region Cir.  No.  68 

Gray,  Carl  R.,  appointment ., Cii-.  No.    1 

Cii-.  No.  32 

Great  Lakes,  control  of  shipping Cir.  No.    5 

Great  Northern  Railway  in  Northwestern  Region Cir.  No.  33 

Green  Bay  &  Western  Railroad  included  in  Northwestern  Region  July  10, 

1918 Cir.  No.  33,'  Sup.  No.  1 

Gulf  coast  lines  in  Southwestern  Region Cir.  No.  35 

Gidf,  Colorado  &  Santa  Fe  Railway  in  Southwestern  Region Cir.  No.  35 

Gutheim,  A.  G.,  Car  Service  Section Cir.  No.    2 

Harrison,  S.  N.,  member  Railway  Board  of  Adjustment  No.  3 Cir.  No.  65 

Hartenstein,  F.,  member  Railway  Board  of  Adjustment  No.  3 Cir.  No.  65 

Health  and  Medical  Relief  Committee  appointed Cir.  No.  58 

Heiser,  Victor  G.  (Dr.),  appointed  member  Committee  on  Health  and  Medical 

Relief Cir.  No.  58 

Higgins,  J.  W.,  Railway  Board  of  Adjustment  No.  1 Cir.  No.  22 

Hines,  Walker  D.,  Assistant  Director  General,  appointment  of Cir.  No.  26 

Hoard,  Otto  E.,  Railway  Board  of  Adjustment  No.  2 Cir.  No.  38 

Holden,  Hale,  regional  director  of  Central  Western  Region,  appointment 
of Cir.  No.  34 


440 

Houston  &  Brazos  Valley  Railway  included  in  Southweetem  Region  July  10, 

1918 Cir.  No.  35,  Sup.  No.  1 

Houston  Belt  &  Terminal  Railway  included  in  Southwestern  Region  July  10, 

1918 Cir.  No.  35,  Sup.  No.  1 

Houston,  East  &  West  Texas  Railway  in  Southwestern  Region Cir.  No.  35 

Houston  &  Texas  Central  Railroad  in  Southwestern  Region Cir.  No.  35 

Howard,  John  H.,  appointed  manager  of  Freight  Claim  Section,  Division  of 

Law;  office,  Southern  Railway  Building,  Washington,  D.  C Cir.  No.  48 

Hudson  &  Manliattan  Railroad  in  Allegheny  Region Cir.  No.  28 

Huntingdon  &  Broad  Top  Mountain  Railroad  included  in  Allegheny  Region 

July  10,  1018 Cir.  No.  28,  Sup.  No.  1 

Illinois  Central  Railroad  (^north  of  Cairo  and  Paducah)  in  Central  Western 

Region Cir.  No.  34 

Illinois    Terminal    Railroad    included    in    Southwestern    Region    July    10, 

1918 Cir.  No.  35,  Sup.  No.  1 

Improvements,  payment  for Cir.  No.  12 

Improvements,  public ;  street  or  road  construction Cir .  No.  44 

Canceled Cir.  No.  44-A 

Income  tax;  salaries Cir.  No.    8 

Indiana  Harbor  Belt  Railroad  included  in   Northwestern  Region  Jiily  10, 

1918. Cir.  No.  33,  Sup.  No.  1 

Indianapolis  Union  Railway  added  to  Eastern  Region  July  10,  1918 Cir.  No.  41 

Inland  traffic  manager,  T.  C.  Powell,  to  act  as  special  representative  of  United 

States  Railroad  Administration Cir.  No.  40 

Inland  water  transportation;  any  Federal  systems  of  inland  water  transportation 
hereafter  created  by  the  Director  General  will  report  to  director  of  Division 

of  Inland  Waterways Cir.  No.  53 

Inland  W^aterways  Committee Cir.  No.    6 

Inland  Waterways  Committee  discontinued Cir.  No.  53 

Inspection  and  Test  Section  of  Division  of  Transportation  created Cir.  No.  15 

Insurance,  fire Cir.  No,  21 

Insurance  and  Fire  Protection  Section,  Division  of  Finance  and  Piu-chases  es- 
tablished; Mr.  John  Skelton  Williams  will  supervise,  assisted  by  Mr.  Theo- 
dore H.  Price,  actuary  to  the  United  States  Railroad  Administration.  Mr. 
Charles  N.  Rambo  appointed  manager  of  section.  Premier  Building,  No.  718 

Eighteenth  Street,  NW.,  Washington,  D.  C Cir.  No,  54 

Insurance  and  Fire  Protection  Section;  name  changed  to  Fire  Loss  and  Pro- 
tection       Cir.  No.  54-A 

Interest,  payment  of Cir.  No.  12 

Interest  rates;  banks  and  trust  companies  in  which  funds  of  United  States  Rail- 
road Administration  or  the  various  Federal  treasurers  are  deposited,  in  future 

to  pay  interest  at  specified  rates Cir.  No,  59 

International  &  Creat  Northern  Railroad  in  Southwestern  Region. . ..     Cir.  No,  35 
Interpretations  to  wage  orders.     (See  also  Sups.  6  and  6-A  to  G.  O.  No,  27;  see 

also  .\rt.  IX,  G.  O.  No.  53) Cir.  No.  65 

Interregional  Traffic  Committee,  appointment Cir,  No.    4 

Iowa  Transfer  Railway  included  in  Northwestern  Region  July  10, 1918. .     Cir.  No.  33, 

Sup.  No,  1 
Jay  Street  Terminal  (New  York )  added  to  Eastern  Region  July  10, 1918. .  Cii-.  No.  41 
Joint  concrete  statement  of  facts,  submission  to  Railway  Board  of  Adjustment 

No.  3 Cir.  No,  65 

Joplin  Union  Depot  Co.  included  in  Southwestern  Region  July  10, 1918.     Cir.  No   35, 

Sup.  No.  1 


441 

Kansas  City  Connecting  Railroad  included  in  Central  Western  Region  July  10, 

1918 (ir.  No,  34,  &up,  Xo.  1 

Kansas  City,  Mexico  &  Orient  Lines  included  in  Southwestern  Region  July 

10,  1918 Cir.  No.  35,  Sup.  No.  1 

Kansas  City  Southern  Railway  in  Southwestern  Region Cir.  No.  35 

Keller,  Charles  (Col.),  appointment Cir,  No.    6 

Keokuk  Union  Depot  Co.  included  in  Central  Western  Region  July  10.  1918. . 

Cir,  No.  34,  Sup.  No.  1 

Kendall,  W.  C,  appointed  manager  Car  Service  Section Cir,  No,    2 

Kennedy,  H.  A. ,  chairman  Railway  Board  of  Adjustment  No.  3 Cir,  No.  ^Ib 

Kentucky  &  Indiana  Terminal   Railroad  added  to  Eastern  Region  July  10, 

1918. . ." "^Cir,  No.  41 

Kipp,  G.  E.,  member  Railway  Board  of  Adjustment  No.  3 Cir.  No.  65 

Ivnight,  F.  H.,  Railway  Board  of  Adjustment  No.  2 Cir.  No.  38 

Labor,  Di^^sion  of Cir,  No.    1 

Labor  Di\dsion  director,  United  States  Railroad  Administi"ation,  to  consider 

controversies  not  covered  by  General  Order  No.  13  and  General  Order  No. 

29 ' Cir.  No.  39 

Lake  Superior  Terminal  &  Transfer  Railway  Co.  included  in  Northwestern 

Region  July  10,  1918 Cir.  No.  33.  Sup,  No.  1 

Law  Di\-ision,  Rroperty  Pi'otection  Section Cir,  No.  14 

Leavenworth  Depot  &  Railroad  Co.  included  in  Central  Western  Region  July 

10,  1918 Cir.  No.  34.  Sup,  No.  1 

Liberty  bonds,  back  payments Cir,  No.  3G 

Liberty  bonds,  officers'  and  employees'  subscriptions Cir,  No.  IS 

Liberty  bonds,  register Cir,  No.  43 

Liberty  bonds,  wage  increase Cir.  No.  24 

Liberty  Loan,  Foiu-th;  Director  General  urges  all  employees  to  cooperate  and 

suggests  they  subscribe  through  railroads Cir.  No.  56 

Cir,  No,  5f3-A 
Liberty  Loan,  Fourth;  officials  and  employees  mged  to  cooperate  in  securing  a 

"100  per  cent "  result  on  every  line Cir,  No,  oO-A 

Liberty  Loan,  Fourth ;  War  Savings  stamps;  special  appeal  of  Director  General . . 

Cir.  No.  51 

Liberty  Loans,  subscriptions Cir.  No.  13 

Limited  use  of  telephone  facilities,  both  railroad  and  commercial Cir.  No.  01 

Lindsay,  C.  E.,  Board  of  Railroad  W^ages  and  Working  Conditions Cir,  No.  31 

Litchfield  &  Madison  Railway  included  in  Southwestern  Region  July  10.  1918. 

Cir.  No.  35,  Sup,  No.  1 

Loan.  Liberty;  Director  General  appeals  to  employees  for  fourth  loan Cir,  No,  56 

Cir.  No.  5t^-.\ 
Loan,  Liberty,  Fourth;  officials  and  employees  vu'ged  to  cooperate  in  securing  a 

"100  per  cent ""  result  on  every  line Cir.  No.  b('<-A 

Loan,  Liberty;  officers'  and  employees'  subscriptions Cir,  No.  18 

Loans,  control  of Cir,  No.  12 

Loans,  Liberty,  subscriptions  to Cir.  No.  13 

Locomotive  and  car  construction,  test  and  inspection  of  materials  for Cir.  No.  15 

Locomotive  Section,  Division  of  Transportation Cii*.  No.    3 

Locomorives,  condition  and  repairs ;  superAision Cir.  No.    3 

Long  Island  Railroad  included  in  Allegheny  Region  July  10,  1918 Cir.  No.  28, 

Sup.  No.  1 
Lorain,  Ashland  &  Southern  Railroad  transfen-ed  from  Eastern  to  Allegheny 

Region Cir.  No.  66 

Los  Angeles  &  Salt  Lake  Railroad  in  Central  Western  Reeion Cir,  No,  34 


442 

Loss  or  damage  by  fire Cir.  No.  21 

Lose  and  damage  freight  claims;  freight  claims  section  established Cii".  No.  48 

Loss  and  damage  freight  claims  and  prevention  of  causes  of  such  claims;  legal 

department Cir.  No.  49 

Loss  or  damage  to  property  by  fire Cir.  No.  67 

Louisiana  &  Arkansas  Railway  in  Southwestern  Region Cir.  No.  35 

Louisiana  Railway  &  Navigation  in  Southwestern  Region Cir.  No.  35 

Louisiana  Western  Railroad  in  Southwestern  Region Cir.  No.  35 

Lovett,  Robert  S.,  appointment Cir.  No.    9 

Loyalty  and  patriotic  support,  employees;  hours,  wages,  behavior Cir.  No.  20 

Lutz,  Charles  A.,  appointed  treasurer,  United  States  Railroad  Administration, 

vice  L.  G.  Scott,  resigned Cir.  No.  62 

McAdoo.  Director  General,  appeals  to  employees  to  cooperate  and  subscribe 

through  railroads  for  Fourth  Liberty  Loan Cir.  No.  56 

McAdoo,  Director  General;  special  appeal;  war-savings  stamps;  Fourth  Lib- 
erty Loan Cir.  No.  51 

McAdoo,  Director  General,  transmits  statement  of  Provost  Marshal  General  to 

employers  and  others;  deferred  classification Cir.  No.  57 

McDonald,  Angus  D.,  temporarily  detailed  to  Washington Cir.  No.  19 

McLennan,  D.  R.,  of  Chicago,  member  Advisory  Committee,  to  cooperate  with 

Insurance  and  Fire  Protection  Section Cir.  No.  54 

McManamy,  Frank,  appointment Cir.  No.    3 

McNulty,  F.  J.,  vice  chairman  Board  of  Adjustment  No.  2 Cir.  No.  38 

Maher,  N.  D.,  regional  director  of  Pocahontas  Region,  appointment  of. .     Cir.  No.  30 

Mail  messages  instead  of  telegraph  and  telephone Cir.  No.  61 

Mallory  Steamship  Co.,  Coastwise  Ad\-isory  Committee Cir.  No.  23 

Mallory  Steamship  Co. ;  properties  now  under  Federal  control  of  this  company 

will  be  included  in  coastwise  steamship  lines;  office,  Southern  Pacific  Pier  49, 

North  River,  N.  Y Cir.  No.  52 

Manager  Freight  Claim  Section,  Division  of  Law,  appointment  of  Mr.  John  H. 

Howard Cir.  No.  48 

Manager  Insm-ance  and  Fire  Protection  Section,  Division  of  Finance  and  Pur- 
chases, appointed,  Charles  N.  Rambo Cir.  No.  54 

Manager  Marine  Insurance  Section,  Wm.  C.  DeLanoy;  office,   Washington, 

D.  C. ;  duties Cir.  No.  60 

Manager  Short  Line  Section,  Division  of  Public  Service  and  Accounting, 

Edward  C.  Niles;  office,  Washington,  D.  C Cir.  No.  46 

Marine  Insurance  Section  established  in  Division  of  Finance  and  Purchases; 

Wm.  C.  DeLanoy  appointed  manager;  office,  Washington,  D.  C;  duties;  Mr. 

Theodore  H.  Price  to  assist  Mr.  John  Skelton  Williams  in  supervising  this 

section Cir.  No.  60 

Marine  Section,  DIa  i.sion  of  Traui^portation Cir.  No.    5 

Marine  Section,  Di^'ision  of  Transportation  discontinued,  effective  September 

1,  1918 Cir.  No.  55 

Marine  and  war  risks  on  vessels  and  floating  e(iuipment,  insurance  for,  to  be 

pro\ided  by  Marine  Insurance  Section Cir.  No.  60 

Markham.  Charles  H.,  regional  director  of  Allegheny  Region,  appointment  of 

(see  also  Cir.  No.  29) Cir.  No.  28 

Materials  and  supplies,  payment  for Cii'.  No.  12 

Material.s,  test  and  inspection  of Cir.  No.  15 

Mather,  Charles  E.,  member  Ad\isory  Committee  to  cooperate  with  Insurance 

and  Fire  Protection  Section Cir.  No.  54 

Meetings,  monthly,  in  1918  and  1919,  dates  for.  Railway  Board  of  Adjustment 

No.  .1 Cir.  No.  65 


443 

Meml)eis  and  officers  of  Railway  Board  ot  Adjustment  Xo.  3 ("ir.  No.  65 

Memorandum  of  undei-standing,  General   Order  No.   53;   conti-oversies  sub- 
mitted to  Railway  Board  of  Adjustment  No.  3  through  Di\'ision  of  Labor, 

United  States  Railroad  Administration Cir.  No.  65 

Memphis  Union  Station  Co.  added  to  Southern  Region Cir.  No.  42 

Merchants  &  Miners  Transportation  Co.,  Coastwise  Steamship  Advisory  Com- 
mittee      Cir.  No.  23 

Merchants  &  Miners  Transportation  Co.  properties  now  under  Federal  control 
■will  be  included  in  coastwise  steamship  lines;  office.  Southern  Pacific  Pier  49, 

North  River.  N.  Y Cir.  No.  52 

Midland  Valley  Railroad  in  Southwestern  Region Cir-.  No.  35 

Mineral  Range  Railroad  included  in  Northwestern  Region  July  10, 1918.     Cir.  No.  33, 

Sup.  No.  1 

Minneapolis  Belt  Line  Co.  included  in  Northwestern  Region  July  10,  1918 

Cir.  No.  33,  Sup.  No.  1 
Minneapolis  &  Eastern  Railway  included  in  Northwestern  Region  July  10, 1918 . 

Cir.  No.  33,  Sup.  No.  1 

Minneapolis  &  St.  Louis  Railroad  in  Northwestern  Region Cir.  No.  33 

Minneapolis,  St.  Paul  &  Sault  Ste.  Marie  Railwav  in  Northwestern  Region.. 

Cir.  No.  33 
Minnesota  Transfer  Railwav  included  in  Northwestern  Region  July  10,  1918. . 

Cii-.  No.  33,  Sup.  No.  1 

Mississippi  Central  Railroad  added  to  Southern  Region Cir.  No.  42 

Missouri  &  Illinois  Bridge  &  Belt  Railway  included  in  Southwestern  Region 

July  10,  1918 Cir.  No.  35,  Sup.  No.  1 

Missouri,  Kansas  &  Texas  Lines  in  Southwestern  Region Cir.  No.  35 

Mis-souri  Pacific  Railway  System  in  Southwestern  Region Cir.  No.  35 

Monongahela  Railway  included  in  Alleghenv  Region  July  10,  1918 Cii\  No.  28, 

Sup.  No.  1 
Monongahela  Railroad  transfen-ed  from  the  Allegheny  to  the  Eastern  Re- 


gion. 


Cir.  No.  68 


Monthly  meetings  in  1918  and  1919,  dates  for.  Railway  Board  of  Adjustment 

No.  3 Cir.  No.  65 

Morgans  Louisiana  &  Texas  Railroad  &  Steamship  Co.  in  Southwestern  Region . . 

Cii-.  No.  35 

Morse,  W.  E.,  Board  of  Railroad  Wages  and  Working  Conditions Cii-.  No.  31 

Miurian,  W.  S.,  Railway  Board  of  Adjustment  No.  2 Cii-.  No.  38 

New  Orleans  Great  Northern  Railroad  added  to  Southern  Region Cir.  No.  42 

'New  York  Dock  Co.  Raikoad  added  to  Eastern  Region  July  10,  1918  . .     Cir.  No.  41 
New  York  &  New  Jersey  Canals,  Mr.  H.  S.  Noble  appointed  Federal  Manager 

September  5,  1918 Cii-.  No.  53 

New  York  offices,  payment  of  expenses  account  of Cir.  No.  10 

New  York,  Philadelphia  &  Norfolk  Railroad  in  Allegheny  Region Cir.  No.  28 

Niles,  Edward  C,  appointment  of,  Manager  Short  Line  Section,  Division  Public 

Service  and  Accounting;  office,  Washington,  D.  C Cii-.  No.  46 

Noble,  H.  S.,  appointed  Federal  Manager  New  York  and  New  Jersey  Canals 

(to  succeed  Mr.  Tomlinson)  September  5,  1918 Cii-.  No.  53 

Norfolk  &  Portsmouth  Belt  Railway  in  Pocahontas  Region Cir.  No  30 

Norfolk,  Portsmouth,  and  Newport  News,  Ya.,  terminals  of  all  railroads  at,  in 

Pocahontas  Region Cti-.  No.  30 

Norfolk  &  Western  Railway  in  Pocahontas  Region Cir.  No.  30 

Northern  Pacific  Railway  in  Northwestern  Region Cir.  No.  33 

Northwestern  Pacific  Railroad  in  Central  AVestern  Region Cir.  No.  34 

Northwestern  Region  created ;  office,  Chicago Cir.  No.  33 


444 

Northwestern  Region,  railroads  included  July  10,  1918 Cir.  No.  33,  Sup.  No.  1 

Ocean  Steamship  Co.,  Coastwise  Steamship  Ad\'isory  Committee Cir.  No.  23 

Ocean  Steamship  Co.,  properties  now  under  Federal  control  will  be  included 
in  Coastwise  Steamship  Lines;  office,  Southern  Pacific  Pier  49,  North  River, 

N.  Y Cir.  No.  52 

Officers  and  employees,  behavior  of  (see  also  G.  0.  No.  8) Cir.  No.  20 

Officers  and  employees,  in  connection  with  Liberty  Loan Cir.  No   18 

Officers  and  employees  of  railroads,  discontinuance  of  presents  from  shippers 

and  business  houses  to Cir.  No.  64 

Officers'  expenses  and  salaries,  those  not  reasonably  required  for  operation  of 

railroads Cir.  No.  17 

Officers  and  members  of  Railway  Board  of  Adjustment  No.  1 Cir.  No.  22 

Officers  and  members  of  Railway  Board  of  Adjustment  No.  2 Cir.  No.  38 

Officers  and  members  of  Railway  Board  of  Adjustment  No.  3 Cir.  No.  65 

Offices,  New  York  Offices  of  Railroads Cu-.  No.  10 

Officials  and  employees  urged  to  cooperate  in  securing  ' '  100  per  cent "  on  every 

line,  in  subscriptions  to  Fourth  Liberty  Loan Cii'.  No.  56-A 

Ogden  Union  Railway  &  Depot  Co.  included  in  Central  Western  Region  July  10, 

1918 Cir.  No.  34,  Sup.  No.  1 

Oklahoma  Belt  Railway  included  in  Southwestern  Region  July  10,  1918.  Cir.  No.  35, 

Sup.  No.  1 
Old  Dominion  Steamship  Co. ,  Coastwise  Steamship  Advisory  Committee.    Cir.  No  ■  23 
Old  Dominion  Steamship  Co.,  properties  now  under  Federal  control  will  be 
included  in  Coastwise  Steamship  Lines;  office,   Southern  Pacific  Pier  49, 

North  River,  N.  Y Cir.  No.  52 

"One  hundred  pei  cent"  on  every  line,  officials  and  employees  urged  to  co- 
operate in  subscriptions  to  Fourth  Liberty  Loan Cir.  No.  56-A 

Ontonagon  Railroad  included  in  Northwestern  Region  July  10,  1918..     Cir.  No.  33, 

Sup.  No.  1 
Operating  Department  of  Pullman  Co.  to  be  hereafter  known  as  Pullman  Car 
Lines;  Mr.  L.  S.  Taylor  is  appointed  manager,  office  in  Pullman  Building, 

Chicago,  111 Cir.  No.  47 

Operation  Division  created;  Carl  R.  Gray  appointed  director Cir.  No.  32 

Oregon  Electric  Railway  included  in  Northwestern  Region  July  10, 1918.  Cir.  No.  33, 

Sup.  No.  1 

Oregon  Short  Line  Railroad  in  Central  Western  Region Cir.  No.  34 

Oregon-Washington  Railroad  &  Navigation  in  Northwestern  Region Cir.  No.  33 

Organization  of  Board  of  Railroad  Wages  and  Working  Conditions Cir.  No.  31 

Organization,  Director  General's  Staff Cir.  No- 1 

Organization  of  Railway  Board  of  Adjustment  No.  1 Cir.  No.  22 

Organization  of  Railway  Board  of  Adjustment  No.  2 Cii-.  No.  38 

Organization  of  Railway  Board  of  Adjustment  No.  3,  officers  and  members  of, 

dates  for  meetings  1918  and  1919,  duties Cii".  No.  65 

Overcharge  and  relief  claims  will  be  handled  by  accounting  department    Cir.  No.  49 
Pafific  Coaet  Railroad  included  in  Northwestern  Region  July  10,  1918.  Cir.  No.  33, 

Sup.  No.  1 
Panhandle  &  Sante  Fe  Railway  included  in  Centi'al  Western  Region  July  10, 

1918 Cir.  No  34,  Sup.  No.  1 

Patriotic  support  and  loyalty  of  employees,  hours,  wages,  behavior Cir.  No.  20 

Patriotic  support  of  railway  employees  and  employees  of  steamships  under 
control  of  Director  General,  to  Third  Liberty  Loan,  was  more  than  gratifying. 
Employees  urged  to  cooperate  in  securing  '"100  per  cent'  on  every  line 

for  Fourth  Liberty  Loan Cir.  No.  56-A 

Payments,  rules  regarding Cii*.  No.  12 


445 

Payne,  John  Barton,  appointment Cir.  Xo.  1 

Peek,  G.  L.,  Pittsburgh,  Pa.,  Federal  Afanager  Pennsylvania  Lines  we«t  of  Erie 

and  Pittsburgh ("ir.  No.  66 

Pennsylvania  Linea  (west  of  Erie  and  Pittsburgh),  transferred  from  Eastern 

to  Allegheny  Region Cir.  No.  60 

Pennsylvania  Raihoad   (east  of  Erie  and  Pittsburgh,  including  terminals  at 

Pittsburgh)  in  Allegheny  Region Cir.  No.  28 

Peruith,  W.  H.,  Railway  Board  of  Adjustment  No.  2 Cir.  No.  38 

Peoria  &  Pekin  Union  Railway  included  in  Central  Western  Region  July  10, 

1918 ar.  No.  34,'Sup.  No.  1 

Personal  injury  and  damage  to  property  claims,  other  than  freight Cir.  No.  49 

Phelps,  C.  B.,  Car  Service  Section Cir.  No.  2 

Philadelphia  Belt  Line  included  in  Allegheny  Region  July  10,  1918.    Cir.  No.  28, 

Sup.  No.  1 

Philadelphia;  Office  of  Allegheny  Region Cir.  No.  28 

Philadelphia  &  Reading  Railway  in  Allegheny  Region Cir.  No,  28 

Phillips,  Albert,  Railway  Board  of  Adjustment  No.  1 Cii-.  No.  22 

Pittsburg,  Chartiers  &  Youghiogheny  Railroad  included  in  Allegheny  Region 

July  10,  1918 ". Cir.  No.  28,  Sup.  No.  1 

Pittsburgh  &  Lake  Erie  Railroad  in  Allegheny  Region Cir.  No.  28 

Pittsburgh   &   Lake   Erie   Railroad   transferred   from   Allegheny  to   Eastern 

Region Cir.  No.  68 

Pittsburgh  &  West  Vii^nia  Railroad  transferre<l  from  the  Allegheny  to  the 

Eastern  Region Cir.  No.  68 

Pleasants,  W\  H. ,  appointment Cir.  No.    5 

Pocahontas  Region,  Ashland  Coal  &  Iron  Railway  included  July  10,  1918 

Cir.  No.  30,  Sup.  No.  1 

Pocahontas  Region  created;  office,  Roanoke,  Ya Cir.  No,  30 

Police  Section  and  Secret  Service  Branch  of  Division  of  Operation  created; 

W.  J,  Flynn  appointed  chief;  office,   Southern  Railway  Building,   Wash- 
ington, D.  C Cir.  No.  69 

Police  service  of  various  railroads Cir.  No.  69 

Policy  of  Railroad  Administration,  Christmas  giving  from  shippers  to  railroad 

officials  and  employees  to  be  discontinued Cir.  Nc).  64 

Port  Townsend  &  Puget  Sound  Railway  included  in  Northwestern  Regifm 

July  10,  1918 .' Cir,  No.  33,  Sup.  No.  1 

Potter,  P",  F.,  chairman  Railway  Board  of  Adjustment  No.  2 cir.  No.  38 

Powell,  T.  C,  appointment Cir.  No.  4 

Powell,  T,  C,  manager  of  inland  traffic,  War  Industries  Board,  t^i  act  as  special 

representative  of  United  States  Railroad  Administration Cir.  No.  40 

Preference,  car  supply  and  movement Cir,  No,  2 

Presents,  Christmas,  etc.,  from  shippers  to  officers  and  employees  of  railroads 

should  be  discontinued Cir.  No,  64 

Price,  Oscar  A,,  assistant  to  the  Dii-ector  General  of  Railroads Cir,  No,  37 

Price,   Theodore  H.,   actuary  to  United   States  Railroad  Administration  in 

charge  of  new  Bureau  for  Suggestions  and  Complaints Cir.  No.  50 

Price,  Theodore  H.,  actuary  of  United  States  Railroad  Administration,  duties 

of Cir.  No,  27 

Price,  Theodore  H,,  to  assist  Mr,  John  Skelton  Williams  in  Bupervifiiag  Marine 

Insurance  Section  duties Cir.  No.  60 

Price,  Theodore  II.,  chairman  Advisory  Committee  to  cooperate  with  Insurance 

and  Fire  Protection  Section,  Division  of  Finance  and  Purchases Cir,  No.  54 

Pring,  George  W.,  Railway  Board  of  Adjustment  No.  2 Cir.  No.  38 

Priority,  car  supply  movement (["ir.  No.  2 


446 

Property,  loss  or  damage  by  fire Cir.  No.  67 

Property  Protection  Section,  creation Cir.  No.  14 

Protection  of  Railroad  Property,  Section,  creation  of Cii'.  No.  14 

Prouty,  Charles  A.,  appointment Cir.  No.  1 

Provost  Marshal  General,  statement,  September  9,  1918,  to  employees  and 
other  representatives  of  industry  urging  cooperation  in  classification  of  new 
registrants  under  selective  service  act;   claims  for  deferred  classification; 

letter  from  Mr.  McAdoo  transmits  statement  to  regional  directors Cir.  No.  57 

Public  improvements;  street  or  road  construction Cir.  No.  44 

Canceled Cir.  No.  44-A 

Public  Service  and  Accounting  Division Cir.  No.  1 

Pueljlo  Union  Depot  &   Railroad  Co.  included  in  Central  Western  Region 

July  10,  1918 Cii-.  No.  34,  Sup.  No.  1 

Pullman  Co.  Operating  Department  hereafter  to  be  known  as  Pullman  Car 

Lines;  Federal  manager,  Mr.  L.  S.  Taylor Cii-.  No.  47 

Purchases,  Finance  and  Purchases  Division Cii'.  No.  1 

Quincy,  Omaha  &  Kansas  City  Railroad  in  Central  Western  Region Cir.  No.  34 

Railroad  deposits Cir.  No.  59 

Railroad  officers  and  employees,  discontinuance  of  Christmas  presents  from 

shippers  and  business  houses  to Cir.  No.  64 

Railroad  Wage  Commission  to  report  upon  conclusion  of  Liberty  loan  cam- 
paign       Cir.  No.  24 

Railroads  added  to  Eastern  Region  July  10,  1918 Cii'.  No.  41 

Railroads  included  in  Allegheny  Region  July  10,  1918.  .  .  .     Cii".  No.  28,  Sup.  No.  1 
Railroads  included  in  Central  Western  Region  July  10,  1918. .     Cii'.  No.  34,  Sup.  No.  1 

Railroads  included  in  Northwestern  Region  July  10,  1918 Cii'.  No.  33,  Sup.  No.  1 

Railroads  included  in  Southwestern  Region  July  10,  1918. . .     Cir.  No.  35,  Sup.  No.  1 

Railroads  transferred  from  Allegheny  to  Eastern  Region Cii'.  No.  68 

Railroads  transferred  from  Eastern  to  Allegheny  Region Cii'.  No.  66 

Railway  Board  of  Adjustment  No.  1 Cii'.  No.  39 

Railway  Board  of  Adjustment  No.  1,  organization  of Cir.  No.  22 

Railway  Board  of  Adjustment  No.  2,  organization  of Cii'.  No.  38 

Raihvay  Board  of  Adjustment  No.  3,  meeting  for  organization,  officers  and 
members  of,  dates  for  meetings,   1918  and  1919,  duties;  office.   Southern 

Railway  Building,  Wa8hingt(m,  D.  C.     (See  also  G.  0.  No.  53) Cii-.  No.  65 

Rambo,  Charles  N.,  appointed  manager  of  Insurance  and  Fire  Protection 

Section  of  Division  of  Finance  and  Purchases Cir.  No.  54 

Randolph,  G.  F.,  appointment Cii'.  No.  4 

Rebuilding;  fire  losses Cir.  No.  67 

Refund  on  Liberty  bonds;  Fourth  Liberty  loan Cir.  No.  56 

Cir.  No.  58-A 
Region,  Allegheny,   created;  Charles  H.   Markham,  regional  director;  office, 

lUoad  Street  Station,  Philadelphia Cir.  No.  28 

Region,  Allegheny,  Railroads  included  July  10,  1918 Cir.  No.  28,  Sup.  No.  1 

Region,  Central  Western,  created;  Hale  Ilolden,  regional  director;  office,  Chi- 

•     cago,  111 : Cir.  No.  34 

Region,  Central  Western,  railroads  included  July  10,  1918..     Cir.  No.  34,  Sup.  No.  1 

Region,  Eastern,  railroads  added  to,  July  10,  1918 Cir.  No.  41 

Region,  Northwestern,  created;  R.  H.  Aishton,  regional  director;  office,  Chi- 
cago, 111 Cir.  No.  33 

Region,  Northwestern,  railroads  included  July  10,  1918 Cir.  No.  33,  Sup.  No.  1 

Region,  Pocahontas,  Ashland   Coal  &    Iron  Railway  included  July  10,  1918, 

Cir.  No.  30,  Sup.  No.  1 


447 

Region,  Pocahontas,  createfl;  X.  D.  Maher,  regional  director;  office,  Roanoke, 

Va Cir.  No.  30 

Region,  Southern,  raih'oads  added  July  10,  1918 Cir.  Xo.  42 

Region,  Southwestern,  created;  B.  F.  Bush,  regional  director;  office,  St.  Louis, 

Mo Cir.  No.  35 

Region,  Southwestern,  railroads  included  July  10,  1918 Cir.  No.  35,  Sup.  Xo.  1 

R^onal  director  xVllegheny  Region,  appointment  of  Charles  H.  Markham. . 

Cir.  Xo.  28 
Regional  director  Central  Western  Region,  appointmen  t  of  Hale  Holden. .     Cir.  Xo.  34 

Regional  director  X'orthwestern  Region,  R.  H.  Aishton Cir.  No.  33 

Regional  director  Pocahontas  Region,  N.  D.  Maher,  apjwintment  of Cir.  Xo.  30 

Regional  director  Southern  Region,  B.  L.  Winchell,  appointment  of Cir.  No.  29 

Regional  director  Southwestern  Region,  B.  F.  Bush Cir.  No.  35 

Registered  bonds Cir.  No.  43 

Registrants  under  selective  service  act,  classification  of;  letter  from  Mr.  McAdoo 

transmits  statement  of  Provost  Marshal  General  to  regional  directors. .     Cir.  No.  57 
Regulations,  Bmeau  for  Safe  Transportation  of  Explosives  and  Other  Danger- 
ous Articles Cir.  No.  G3 

Repair  Section,  Car,  Division  of  Transportation,  creation  of Cir.  No.  16 

Repairs  to  locomotives,  super\'isiou Cir.  No.    3 

Report  in  duplicate,  carriers;  additions,  bettennents,  financial  needs...     Cir.  No.  25 
Report  on  General  Order  Xo.  8  relative  to  hoiu-s,  wages,  and  behavior  of  em- 
ployees      Cir.  No.  20 

Report  marked  "Nothing  to  report"  must  be  submitted  each  month  in  which 
there  are  no  changes  in  salaries  of  officers  recei\'ing  $3,000  to  $10,000  or  more 

(see  also  G.  O.  Xo.  9) Cir.  No.  11 

Report  of  Railroad  Wage  Commission  to  be  made  upon  conclusion  of  Liberty 

loan  campaign Cir.  No.  24 

Resignation,  L.  G.  Scott,  Treasurer  United  States  Railroad  Administration; 

Charles  A .  Lutz  appointed Cii-  jjo  62 

Richardson,  G.  F.,  Car  Service  Section Cir.  No.    2 

Ri^■erside,  Rialto  &  Pacific  Railway  included  in  Central  Western  Region  July 

10,1918 .' Cir.  No.  34,  Sup.  No.  1 

Road  or  street  construction  and  other  public  improvements Cir.  X'^o.  44 

Canceled Cir.  No.  44-A 

Roads,  short  line Cir.  X^o.  46 

Roanoke,  Va.,  office  of  Pocahontas  Region Cir.  No.  30 

Rock  Island  Lines  (south  of  Chickasha,  El  Reno  to  Memphis  and  branches, 

and  St.  Louis  to  Kansas  City )  in  Southwestern  Region Cir.  No.  35 

Rolling  stock  equipment;  fire  losses Cir.  No.  67 

Rules  for  relie\ing  telegraph  and  telephone  facilities  of  unnecessary  busi- 
ness      Cir.  No.  61 

Safety  Section,  Division  of  Transj^rtation Cir.  No.    7 

Safety,  supervision  of  safety  work  on  railroads Cir.  No.    7 

St.  Charles  Air  Line  included  in  Xorthwestern  Region  July  10, 1918 Cir.  No.  33, 

Sup.  No.  1 

St.  Joseph  Belt  Railway  included  in  Southwestern  Region  July  10,  1918 

Cir.  No.  35,  Sup.  No.  1 

St.  Joseph  &  Grand  Island  Railway  in  Central  Western  Region Cir.  No.  34 

St.  Joseph  LTnion  Depot  Co.  included  in  Southwestern  Region  July  10,  1918. . . 

Cir.  No.  35,  Sup.  No.  1 
St.  Louis  &  Belleville  Electric  Railway  included  in  Southwestern  Region 
July  10,  1918 ' Cir.  No.  35,  Sup.  No.  1 


448 

St.  Louis  Merchants  Bridge  Terminal  Railway  included  in  Southwestern  Re- 
gion July  10,  1918 Cir.  No.  35,  Sup.  No.  1 

St.  Louie  National  Stock  Yard  Co.  included  in  Southwestern  Region  July  10, 

1918 Cir.  No.  35,  Sup.  No.  1 

St.  Louis  &  O' Fallon  Railway  included  in  Southwestern  Region  July  10, 1918. 

Cir.  No.  35,  Sup.  No.  1 

St.  Louis-San  Francisco  Railroad  in  Southwestern  Region Cir.  No.  35 

St.  Louis-San  Francisco  Railway  (between  Memphis  and  Birmingham)  trans- 
ferred from  the  Southwestern  to  the  Southern  Region  July  10,  1918.. .     Cir.  No.  42 

St.  Louis  Southwestern  Railway  in  Southwestern  Region Cir.  No.  35 

St.  Loms,  Troy  &  Eastern  Railroad  included  in  Southwestern  Region  July  10, 
1918 Cir.  No.  35,  Sup.  No.  1 

St.  Paul  Bridge  &  Terminal  Railway  included  in  Northwestern  Region  July 
10,  1918 Cir.  No.  33,  Sup.  No.  1 

St.  Paul  Union  Depot  Co.  included  in  Northwestern  Region  July  10,  1918. 

C^r.  No.  33,  Sup.  No.  1 

Salaries  and  office  and  traveling  expenses  of  officers  not  reasonably  required  for 
operation  of  railroads Cir.  No.  17 

Salaries  of  officers  receiving  .$3,000  to  $10,000  or  more,  carriers  must  submit 
statement  marked  "Nothing  to  report"  each  month  in  which  there  are  no 
changes  in  such  salaries  (see  also  G.  O.  No.  9) Cir.  No.  11 

Salaries;  report  of  salaries  of  employees;  account  of  income  tax Cir.  No.    8 

Salt  Lake  City  Union  Depot  &  Railroad  Co.  included  in  Central  Western  Region 
July  10,  1918 Cir.  No.  34,  Sup.  No.  1 

San  Antonio  &  Aransas  Pass  Railway  in  Southwestern  Region Cir.  No.  35 

San  Antonio,  Uvalde  &  Gulf  Railroad  included  in  Southwestern  Region 
July  10,  1918 Cii-.  No.  35,  Sup.  No.  1 

San  Francisco;  St.  Louis-San  Francisco  Railway  (between  Memphis  and 
Birmingham)  transferred  from  the  Southwestern  to  the  Southern  Region 
July  10,  1918 Cii.  No.  42 

Schoen,  A.  M.,  member  advisory  committee  to  cooperate  with  Insurance  and 
Fire  Protection  Section Cir.  No.  54 

Scott,  L.  G.,  appointment  of,  acting  treasurer  of  United  States  Railroad  Admin- 
istration, \ace  Mr.  A.  D.  McDonald  (vice  president  and  controller  of  Southern 
Pacific  Co.),  acting  treasurer,  resigned Cir.  No.  45 

Scott,  L.  G.,  treasurer  United  States  Railroad  Administration,  resigned; 
Charles  A.  Lutz  appointed Cir.  No.  62 

Secret  Service  Branch  of  Claims  and  Property  Protection  Section  of  Division 
of  Law  is  terminated;  Secret  Service  and  Police  Section  of  Division  of  Opera- 
tion created,  W.  J.  Flynn  appointed  chief;  office.  Southern  Railway  Building, 
Washington,  D.  C Cir.  No.  69 

Secret  Service  and  Police  Section  of  Division  of  Operation  created,  W.  J.  Flynn 
appointed  chief ;  office,  Southern  Railway  Building,  Washington,  D.  C. .    Cir.  No.  69 

Secret  Service,  Property  Protection  Section Cir.  No.  14 

Section,  Freight  Claim,  Division  of  Law,  establishment  of,  appointment  of 

manager,  Mr.  John  H.  Howard Cir.  No.  48 

Section  of  Insurance  and  Fire  Protection,  Division  of  Finance  and  Purchases, 

established;  Mr.  Charles  N.  Rambo  ap])()inted  manager Cir.  No.  54 

Section,  Marine,  discontinued  September  1,  1918 Cir.  No.  55 

Selective  Service  Act,  letter  to  regional  directors  from  Mr.  McAdoo  transmits 

statement  of  Provost  Marshal  General,  deferred  classification Cir.  No.  57 

Sheppard,  L.  E.,  chaiiman  Railway  Board  of  Adjustment  No.  1 Cii-.  No.  22 

Shippers,  Christmas  presents  to  railroad  officers  and  employees  should  be 
discontinued Cii-.  No.  G4 


449 

Shipping,  control  of Cir.  No.  5 

Ship^)ing  on  Great  Lakes  under  Federal  control  will  be  under  jurisdiction  of 

regional  director,  Eastern  Region Cir.  No.  55 

Short  line  roads Cjj.  No.  46 

Short  Line  Section  of  Division  of  Public  Service  and  Accounting,  creation  of, 

Edward  C.  Niles  appointed  manager;  office,  Washington,  D.  C Cir.  No.  46 

Sines,  G.  H.,  chairman  Board  of  Railroad  Wages  and  Working  Conditions..    Cir.  No.  31 
Sioux  City  Terminal  Railway  included  in    Northwestern  Region  July  10, 

1918 Cir.  No.  33,  Sup'.  No.  1 

Somerville,  J.  A.,  Car  Service  Section Cir.  No,    2 

South  Chicago  &  Southern  Railroad  included  in  Northwestern  Region,  July  10, 

1918 Cir.  No.  33,  Sup.  No.  1 

Southern  Illinois  &   Missouri  Bridge  Co.  included  in   Southwestern  Region 

July  10,  1918 Cir.  No.  35,  Sup.  No.  1 

Southern  Pacific  Co.,  Atlantic  steamship  lines,  properties  now  under  Federal 
control  will  be  included  in  coastwise  steamship  lines;  office,  Southern  Pacific 

Pier  49,  North  River,  N.  Y Cir.  No.  52 

Southern  Pacific  Lines  (north  of  Ashland,  Oreg. )  in  Northwestern  Region.    Cir.  No.  33 
Southern  Pacific  Lines  (west  of  El  Paso  and  Ogden,  except  north  of  Ashland, 

Oreg.)  in  Central  Western  Region Cir.  No.  34 

Southern    Pacific    Steamship   Lines,    Coastwise    Steamship   Advisory    Com- 
mittee       Cir.  No.  23 

Southern  Region;  office,  Atlanta,  Ga Cir.  No.  29 

Southern  Region,  railroads  added  to,  July  10,  1918 Cir.  No.  42 

Southern  Steamship  Co.,  Coastwise  Steamship  Advisory  Committee Cir.  No.  23 

Southern  Steamship  Co.,  properties  now  under  Federal  control  will  be  included 
in  coastwise  steamship  lines;  office.  Southern  Pacific  Pier  49,  North  River, 

N.  Y Cir.  No.  52 

Southwestern  Region  created Cir.  No.  35 

Southwestern  Region,  railroads  included  July  10,  1918 Cir.  No.  35,  Sup.  No.  1 

Southwestern  Region,  St.  Louis-San  Francisco  Railway  (between  Memphis  and 

Birmingham)  transferred  to  Southern  Region  July  10,  1918 Cir.  No.  42 

Special  representative  United  States  Railroad  Administration,  T.  C.  Powell 

appointed;  also  to  continue  duties  as  manager  of  inland  traffic Cir.  No.  40 

Spence,  L.  J.,  chairman  Coastwise  Steamship  Advisory  Committee Cir.  No.  23 

Spokane  International  Railway  in  Northwestern  Region Cir.  No.  33 

Spokane,  Portland  &  Seattle  Railway  in  Northwestern  Region Cir.  No.  33 

Stamps,  War  Savings Cir.  No.  36 

Cir.  No.  51 
Statement  of  fact,  joint  or  separate  submission  to  Railway  Board  of  Adjust- 
ment No.  3 Cir.  No.  G5 

Statement  marked  "Nothing  to  report"  must  be  submitted  each  month  in 
which  there  are  no  changes  in  salaries  of  officers  receiving  $3,000  to  $10,000 

or  more Cir.  No.  11 

Staten  Island  Rapid  Transit  Railway  included  in  Allegheny  Region  July  10, 

1918 Cir.  No.  28,  Sup.  No.  1 

Statistics,  actuary,  of  United  States  Railroad  Administration Cir.  No.  27 

Steamship  Advisory  Committee,  creation  of Cir.  No.  23 

Steamship  lines,  control  of Cir.  No.    5 

Cir.  No.  23 
Stock  Yards  Terminal  Railway  Co.  of  St.  Paul  included  in  Northwestern  Region 

July  10,  1918 Cir.  No.  33,  Sup.  No.  1 

105889°— 19 29 


450 

Street  or  road  construction  and  other  public  improvements Cir.  No.  44 

Canceled .' Cir.  No.'44-A 

Submission  of  controversies  to  Railway  Board  of  Adjustment  No.  3 Cir.  No.  65 

Suggestions  and  Complaints,  Bureau  for,  organization  of Cir.  No.  50 

Siipervision  of  condition  and  repairs  to  cars Cir.  No.  16 

Supervisor,  Marine  Insurance  Section,  in  Division  of  Finance  and  Purchases, 

Mr.  John  Skelton  Williams,  to  be  assisted  by  Theodore  H.  Price ;  duties.     Cir.  No.  60 

Supplies,  payment  for Cir.  No.  12 

Suspicion  and  distrust,  employees  not  to  live  in  atmosphere  of Cir.  No.  20 

Sweeley,  E'.  A.,  Railway  Board  of  Adjustment  No.  2 Cir.  No,  38 

Tatum,  J.  J.,  appointment  of Cir.  No.  16 

Taxes,  income,  salaries Cir.  No.    8 

Taxes,  payment  of Cir.  No.  12 

Taylor,  L.  S.,  appointed  Federal  manager  of  Pullman  Car  Lines;  office,  Pullman 

Building,  Chicago Cir.  No.  47 

Telegraph  Section,  Division  of  Operation,  system  of  censoring  to  reduce  number 

and  length  of  telegraphic  communications Cir.  No.  61 

Telegraph  and  telephone  facilities,  rules  for  relieving  unnecessary  business.  Cir.  No.  61 
Telephone  and  telegraph  facilities,  rules  for  relieving  unnecessary  business.  Cir.  No.  61 
Terminal  Railroad  Association  of  St.  Louis  included  in  Southwestern  Region 

July  10,  1918 ■ Cir.  No.  35,  Sup.  No.  1 

Terminals  of  all  railroads  at  Norfolk,  Portsmouth,  and  Newport  News,  Va.,  in 

Pocahontas  Region Cir.  No.  30 

Test  and  Inspection  Section  of  Division  of  Transportation  created Cir.  No.  15 

Texas  Midland  Railroad  in  Southwestern  Region Cir.  No.  35 

Texas  Midland  Railroad  included  in  Southwestern  Region  JiUy  10,  1918.     Cir.  No.  35 

Sup.  No.  1 

Texas  &  New  Orleans  Railroad  in  Southwestern  Region Cii'.  No.  35 

Texas  &  Pacific  Railway  in  Southwestern  Region Cir.  No.  35 

Thefts,  protection  against Cir.  No.  14 

Titus,  W.  A.,  member  Railway  Board  of  Adjustment  No.  3 Cir.  No.  65 

Toledo,  Peoria  &  Western  Railway  included  in  Central  Western  Region  July  10, 

1918 Cir.  No.  34,  Sup.  No.  1 

Toledo  Terminal  Railroad  added  to  Eastern  Region  July  10,  1918 Cir.  No.  41 

Tomlinson,  G.  A.,  appointed  director  Division  of  Inland  Waterways;    office, 

Washington,  D.  C Cir.  No.  63 

Tomlinson,  G.  A.,  appointment -•     Cir.  No.    6 

Traffic,  Division  of Cir.  No.    1 

Traffic  movement,  committee  to  study Cir.  No.    4 

Trans-Mississippi  Terminal  Railroad  included  in  Southwestern  Region  July  10, 

1918 Cir.  No.  35,  Sup.  No.  1 

Transportation;    any  Federal  system  of  inland  water  transportation  hereafter 

created  by  Director  General  will  report  to  director  of  Division  of  Inland 

Waterways Cir.  No.  53 

Transportation  Division Cir.  No.    1 

TransjK)rtation  Division  Car  Repair  Section  created Cir.  No.  16 

Transportation  Division  changed  to  Division  of  Operation;  Carl  R.  Gray  ap- 
pointed director Cii'.  No.  32 

Transportation  Division,  Locomotive  Section Cir.  No.    8 

Transportation  Division,  Marine  Section Cir.  No.    5 

Transportation  Division,  Safety  Section Cir.  No.    7 

Transportation  of  explosives  and  other  dangerous  artit  les Cir.  No.  63 

Treasurer  United  States  Railroad  AdminiHlralion,  appointment  of  Charles  A. 

Lutz,  vice  L.  G.  Scott,  resigned Cir.  No.  62 


451 

Troy  Union  Railroad  added  to  Eastern  Region  July  10,  1918 dr.  No.  41 

Trust  companies  and  banks  in  which  funds  of  United  States  Railroad  Adminis- 
tration or  of  the  various  Federal  treasurers  are  deposited,  in  future  must  pay 

interest  at  specified  rates ^'^-  ^^-  ^ 

Tumbull,  R.  J.,  Railway  Board  of  Adjustment  No.  2 Cir.  No.  38 

Union  Pacific  Railroad  in  Central  Western  Region • Cir.  No.  34 

Union   Railroad    (Pennsylvania)   included   in    Allegheny    Region   July    10, 

■j^gjg  '_ Cir.  No.  28,  Sup.  No.  1 

Union  Stock  Yards  Co.  of  Omaha  included  in  North-western  Region  July  10, 

29ig Cir.  No.  33,  Sup.  No.  1 

Union  Terminal  Co.  of  Dallas  included  in  Southwestern  Region  July  10, 

j^lg Cir.  No.  35,  Sup.  No.  1 

Van  Domes,  G.  C,  Railway  Board  of  Adjustment  No.  2 Cir.  No.  38 

Vicksburg,  Shreveport  &  Pacific  Railway  included  in  Southwestern  Region 

July  10,  1918 Cir.  No.  35,  Sup.  No.  1 

Vu-ginian  Railway  in  Pocahontas  Region Cir.  No.  30 

Wabash  Railroad  (St.   Louis  to  Kansas  City  and  Omaha)  in  Southwestern 

Region Cir.  No.  35 

Wabash  Railway  (lines  west  of  the  Mississippi  River)  (transferred  from  South- 
western Region)  included  in  Central  Western  Region  July  10,  1918. .     Cir.  No.  34 

Sup.  No.  1 

Wage  Commission Cu".  No.  24 

Wage  orders;  interpretations  (see  also  Sups.  6  and  6-A  to  G.  O.  No.  27 ;  see  also 

Art.  9,  G.  O.  No.  53) Cir.  No.  65 

Wages,  increase  of;  Liberty  Bonds Cir.  No.  24 

Wages  and  Working  Conditions  Board,  organization  of Cir.  No.  31 

Walber,  John  G . ,  Railway  Board  of  Adjustment  No.  1 Cir.  No.  22 

Walker,  H.  B.,  appointed  September  1,  1918,  Federal  manager  of  Coastwise 

Steamship  Lines;  office.  Southern  Pacific  Pier  49,  North  River,  N.  Y.     Cir.  No.  52 
War  and  marine  risks  on  vessels  and  floating  equipment,  insurance  for,  to  be  pro- 
vided by  Marine  Insurance  Section Cir.  No.  60 

War  Savings  Stamps Cir.  No.  36 

War-  Savings  Stamps,  special  appeal  of  Director  General Cir.  No.  51 

Washington    Terminal    Railroad    included    in    Allegheny    Region    July    10, 

3^918 Cir.  No.  28,  Sup.  No.  1 

Waterloo,  Cedar  Falls  &  Northern  Railway  included  in  Northwestern  Region 

July  10,  1918 Cir.  No.  33,  Sup.  No.  1 

Waterways,  Committee  on  Inland Cir.  No.    6 

Waterways,  study  of Cir.  No.    6 

Waupaca-Green  Bay   Railway  included   in    Northwestern    Region  July    10, 

1918 Cir.  No.  33,  Sup.  No.  1 

West  Jersey  &  Seashore  Railroad  in  Allegheny  Region Cir.  No.  28 

West  Side  Belt  Railroad  transferred  from  the  Allegheny  Region  to  the  Eastern 

Region Cir.  No.  68 

West  Tulsa  Belt  Railway  included  in  Southwestern  Region  July  10, 1918 .     Cir.  No.  35, 

Sup.  No.  1 

Western  Maryland  Railroad  in  Allegheny  Region Cir.  No.  28 

Western  Pacific  Railroad  in  Central  Western  Region Cir.  No.  34 

Wharton,  A.  O.,  Board  of  Railroad  Wages  and  Working  Conditions Cir.  No.  31 

Whiter,  E.  T.,  Railway  Board  of  Adjustment  No.  1 Cir.  No.  22 

Wichita  Falls  &  Northwestern  Railway  in  Southwestern  Region Cir.  No.  35 

Wichita  Union  Terminal  Railway  included  in  Central  Western  Region  July  10, 

1918 Cir.  No.  34,  Sup.  No.  1 

Wichita  Vallev  Railway  in  Southwestern  Region Cir.  No.  35 


452 

Wiggins  Ferry  Co.  included  in  Southwestern  Region  July  10,  1918 Cir.  No.  35, 

Sup.  No.  1 

Williams,  John  Skelton,  appointment Cir.  No.    1 

Williams,  John  Skelton,  to  be  assisted  by  Theodore  H.  Price  in  supervising 

Marine  Insurance  Section;  duties Cir.  No.  60 

Winchell,  B.  L.,  appointment Cir.  No.    4 

Winchell,  B.  L.,  regional  director  of  Southern  Region,  appointment  of. .     Cir.  No.  29 

Winston-Salem  Southbound  Railway  Co.  added  to  Southern  Region Cir.  No.  42 

Worcester,  H.  A.,  district  director,  to  report  to  regional  directors,  lines  trans- 
ferred from  Eastern  to  Allegheny  Region Cir.  No,  66 

Working  Conditions  and  Wages  Board,  organization  of Cir.  No.  31 

Young,  C.  B.,  appointment Cir.  No.  15 

Zanesville  Terminal  Railroad  added  to  Eastern  Region  July  10,  1918. . .     Cir.  No.  41 


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